TeenHelp
Support Forums Today's Posts

Get Advice Connect with TeenHelp Resources
HelpLINK Facebook     Twitter     Tumblr     Instagram    Hotlines    Safety Zone    Alternatives

You are not registered or have not logged in

Hello guest! (Not a guest? Log in above!)

As a guest on TeenHelp you are only able to use some of our site's features. By registering an account you will be able to enjoy unlimited access to our site, and will be able to:

  • Connect with thousands of teenagers worldwide by actively taking part in our Support Forums and Chat Room.
  • Find others with similar interests in our Social Groups.
  • Express yourself through our Blogs, Picture Albums and User Profiles.
  • And much much more!

Signing up is free, anonymous and will only take a few moments, so click here to register now!


Education and Careers Work of any kind can get stressful at times. Ask in this forum if you need help with coursework, applications, and more.

Closed Thread
 
Thread Tools Search this Thread
  (#1 (permalink)) Old
Maloo Offline
Maloooooo
I can't get enough
*********
 
Maloo's Avatar
 
Name: Lissa
Age: 28
Gender: Female
Location: The US

Posts: 2,585
Blog Entries: 3
Join Date: January 12th 2010

Exclamation Need help ASAP! Accounting question - December 16th 2011, 03:43 AM

Ok, normally I don't have issues with accounting stuff, but my brain is so fried from finals that I can't figure this question out:

On June 1st, a men's clothing store formed. The owner contributed $30,000 from personal savings, and the business borrowed $150,000 from the local bank for start-up expenses. The loan from the bank is due in three years. The store also purchased $100,000 of men's clothing for resale. The entire purchase was on credit due in 30 days. Create the balance sheet for the store on June 1st. Be sure to accurately label sections and items. [Helpful hint: There are five items in total on the balance sheet for this problem] (10 points)

PLEASE HELP MEEEEEE
   
  (#2 (permalink)) Old
YouHearMe? Offline
Member
Not a n00b
**
 
YouHearMe?'s Avatar
 
Name: Tyler
Age: 27
Gender: Male
Location: Right Here

Posts: 93
Join Date: April 13th 2009

Re: Need help ASAP! Accounting question - December 16th 2011, 04:35 AM

It's been a while since I've taken accounting, that was in High School...but we know that there are 5 items on the balance sheet.

Let's look at debits...specifically assets....what is being brought to the business....
$30k from his personal account
$100K merchandise
$150K loan

The loan and the personal money both belong in capital.

Now the credits; You're going to have to credit Accounts Payable for both the loan and the merchandise purchased on credit.

I don't remember what a balance sheet looks like, I'm sorry. I am pretty sure it's the balances on all of the accounts? So I believe capital will end at $180K, plus the $100K merchandise with a total assets balance of $280K ; and then for credits $100K+$150K for the Accounts Payable totaling $250K

I'm not sure how advanced your class is, but in my second year of accounting I'm pretty sure we had to designate which accounts were held receivable, but again, I can't remember if that goes on the balance sheet.

But I just realized that if the personal cash and the money on loan both go in to capital, there will only be 4 accounts. So, look up what the designation is between the two, I'm sorry I really can't remember that tidbit...

Hopefully this at least helps you get going.

Good luck!
   
  (#3 (permalink)) Old
Maloo Offline
Maloooooo
I can't get enough
*********
 
Maloo's Avatar
 
Name: Lissa
Age: 28
Gender: Female
Location: The US

Posts: 2,585
Blog Entries: 3
Join Date: January 12th 2010

Re: Need help ASAP! Accounting question - December 16th 2011, 04:38 AM

Assets = Liabilities + Stockholders Equity

That's what I thought the formula was for a balance sheet... but I can't get the two sides to equal each other :/
   
  (#4 (permalink)) Old
YouHearMe? Offline
Member
Not a n00b
**
 
YouHearMe?'s Avatar
 
Name: Tyler
Age: 27
Gender: Male
Location: Right Here

Posts: 93
Join Date: April 13th 2009

Re: Need help ASAP! Accounting question - December 16th 2011, 04:40 AM

Okay, sure, so put $30K in cash and $30K in Owner's Equity (that's the account I forgot about)
   
  (#5 (permalink)) Old
YouHearMe? Offline
Member
Not a n00b
**
 
YouHearMe?'s Avatar
 
Name: Tyler
Age: 27
Gender: Male
Location: Right Here

Posts: 93
Join Date: April 13th 2009

Re: Need help ASAP! Accounting question - December 16th 2011, 04:44 AM

Assets
$30K cash
$100K Merchandise
$150K cash

Which will be 2 accounts on the sheet

Liabilities + Equity

$30K Owner's Equity
$100K Accounts Receivable clothing
$150K Accounts Receivable Bank

3 accounts.

Totaling 5 accounts
   
  (#6 (permalink)) Old
Maloo Offline
Maloooooo
I can't get enough
*********
 
Maloo's Avatar
 
Name: Lissa
Age: 28
Gender: Female
Location: The US

Posts: 2,585
Blog Entries: 3
Join Date: January 12th 2010

Re: Need help ASAP! Accounting question - December 16th 2011, 04:45 AM

Thank you so much!!! You're a lifesaver
   
  (#7 (permalink)) Old
YouHearMe? Offline
Member
Not a n00b
**
 
YouHearMe?'s Avatar
 
Name: Tyler
Age: 27
Gender: Male
Location: Right Here

Posts: 93
Join Date: April 13th 2009

Re: Need help ASAP! Accounting question - December 16th 2011, 04:47 AM

You're welcome
Good luck on finals!
   
  (#8 (permalink)) Old
Maloo Offline
Maloooooo
I can't get enough
*********
 
Maloo's Avatar
 
Name: Lissa
Age: 28
Gender: Female
Location: The US

Posts: 2,585
Blog Entries: 3
Join Date: January 12th 2010

Re: Need help ASAP! Accounting question - December 16th 2011, 04:51 AM

Thank you, I need all the luck I can get, haha.
   
Closed Thread

Bookmarks

Tags
accounting, asap, question

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




All material copyright 1998-2019, TeenHelp.
Terms | Legal | Privacy | Conduct | Complaints

Powered by vBulletin®.
Copyright ©2000-2019, Jelsoft Enterprises Ltd.
Search engine optimization by vBSEO.
Theme developed in association with vBStyles.