Frannie's Dance Studio accounting records reflect the following account balances at January 1, 2015.
During 2015, the following transactions occurred:
1 On February 1, rented a small studio for a one year period of time. Paid $6,000 cash.
2 On November 1, received $1,200 cash for dance lessons to be provided evenly over November, December, and January.
3 By December 31, used $3,000 of the supplies
4 At December 31, accrued $3,000 in wages and salaries.
5 During the year, paid cash for $20,000 in wages and salaries
6 During the year, earned $40,000 cash in dance lesson revenue. Required:
Required:
A Determine the effect on the accounting equation of the preceding transactions.
Create a table to reflect the increases and decreases in accounts.
B Prepare an income statement for Frannie's Dance Studio for 2015. Ignore income tax effects.
C Prepare a classified balance sheet for Frannie's Dance Studio at December 31, 2015.

Question

Frannie's Dance Studio accounting records reflect the following account balances at January 1, 2015.
  During 2015, the following transactions occurred:
1 On February 1, rented a small studio for a one year period of time. Paid $6,000 cash.
2 On November 1, received $1,200 cash for dance lessons to be provided evenly over November, December, and January.
3 By December 31, used $3,000 of the supplies
4 At December 31, accrued $3,000 in wages and salaries.
5 During the year, paid cash for $20,000 in wages and salaries
6 During the year, earned $40,000 cash in dance lesson revenue. Required:
Required:
A Determine the effect on the accounting equation of the preceding transactions.
Create a table to reflect the increases and decreases in accounts.
  B Prepare an income statement for Frannie's Dance Studio for 2015. Ignore income tax effects.
C Prepare a classified balance sheet for Frannie's Dance Studio at December 31, 2015.

Quizplus · Accepted Answer

The Answer of Frannie's Dance Studio accounting records reflect the following account balances at January 1, 2015.
  During 2015, the following transactions occurred:
1 On February 1, rented a small studio for a one year period of time. Paid $6,000 cash.
2 On November 1, received $1,200 cash for dance lessons to be provided evenly over November, December, and January.
3 By December 31, used $3,000 of the supplies
4 At December 31, accrued $3,000 in wages and salaries.
5 During the year, paid cash for $20,000 in wages and salaries
6 During the year, earned $40,000 cash in dance lesson revenue. Required:
Required:
A Determine the effect on the accounting equation of the preceding transactions.
Create a table to reflect the increases and decreases in accounts.
  B Prepare an income statement for Frannie's Dance Studio for 2015. Ignore income tax effects.
C Prepare a classified balance sheet for Frannie's Dance Studio at December 31, 2015.

Frannie's Dance Studio Accounting Records Reflect the Following Account Balances