The accounting records of Cary's Magic Shows reflect the following account balances at January 1,2013:
$\begin{array}{llll}
\text { Cash } & \$ 200,000 & \text { Supplies } & \$ 14,000 \
\text { Common Stock } & \$ 100,000 &\text {Retained Earnings } & \$ 114,000
\end{array}$
During 2013,the following transactions occurred:
1. On Febuuary 1, rented a small office for a one year period of time. Paid $ \$ 12,000 $ cash.
2. On November 1 , received $ \$ 3,600 $ cash for magic less ons to be provided evenly over November, December, and Jamary
3. By December 31 , used 6,000 of the supplies.
4. AtDecember 31 , accrued $ \$ 5,000 $ in wages and salaries.
5. During the year paid cash for $ \$ 25,000 $ in wages and salaries.
6. During the year, earned $ \$ 65,000 $ cash in magic lesson revenue. Required:
A) Determine the effect on financial statement accounts of the preceding transactions. Hint: It may be helpful to create a table to reflect the increases and decreases in account.

Question

The accounting records of Cary's Magic Shows reflect the following account balances at January 1,2013:
 $\begin{array}{llll}
  \text { Cash  } &  \$ 200,000  & \text {  Supplies } & \$ 14,000 \
 \text { Common Stock } & \$ 100,000 &\text {Retained Earnings   } &  \$ 114,000
\end{array}$
 During 2013,the following transactions occurred:
 1. On Febuuary 1, rented a small office for a one year period of time. Paid $ \$ 12,000 $ cash.
2. On November 1 , received $ \$ 3,600 $ cash for magic less ons to be provided evenly over November, December, and Jamary
3. By December 31 , used 6,000 of the supplies.
4. AtDecember 31 , accrued $ \$ 5,000 $ in wages and salaries.
5. During the year paid cash for $ \$ 25,000 $ in wages and salaries.
6. During the year, earned $ \$ 65,000 $ cash in magic lesson revenue. Required:
 A) Determine the effect on financial statement accounts of the preceding transactions. Hint: It may be helpful to create a table to reflect the increases and decreases in account.

Quizplus · Accepted Answer

The Answer of The accounting records of Cary's Magic Shows reflect the following account balances at January 1,2013:
 $\begin{array}{llll}
  \text { Cash  } &  \$ 200,000  & \text {  Supplies } & \$ 14,000 \
 \text { Common Stock } & \$ 100,000 &\text {Retained Earnings   } &  \$ 114,000
\end{array}$
 During 2013,the following transactions occurred:
 1. On Febuuary 1, rented a small office for a one year period of time. Paid $ \$ 12,000 $ cash.
2. On November 1 , received $ \$ 3,600 $ cash for magic less ons to be provided evenly over November, December, and Jamary
3. By December 31 , used 6,000 of the supplies.
4. AtDecember 31 , accrued $ \$ 5,000 $ in wages and salaries.
5. During the year paid cash for $ \$ 25,000 $ in wages and salaries.
6. During the year, earned $ \$ 65,000 $ cash in magic lesson revenue. Required:
 A) Determine the effect on financial statement accounts of the preceding transactions. Hint: It may be helpful to create a table to reflect the increases and decreases in account.

The Accounting Records of Cary's Magic Shows Reflect the Following