Clarke Limited had the following balances in its accounting equation at the end of September 30, 2015:
Land and building were acquired at a cost of $30,000. It was estimated that one-third of the total cost should be applied to the cost of land. The following transactions were completed during the month of October:
|
Oct. |
2 |
Paid $110 to satisfy an account payable |
|
3 |
Collected in fill an account receivable of $670 |
|
|
4 |
Purchased office supplies for $400 for credit (record supplies as an asset) |
|
|
8 |
Issued additional share capital for $16,000 cash |
|
|
10 |
Collected $1,000 cash owed by a customer |
|
|
11 |
Purchased equipment for $22,000; made a cash payment of $2,000, the balance to be paid within 30 days |
|
|
15 |
Paid $400 cash to satisfy an account payable |
|
|
20 |
Paid $10,000 in cash in partial settlement of the liability of October 11; took out a long-term loan for the balance |
|
|
31 |
Collected in fill an account receivable of $300. |
Required:
- Calculate the missing figures in the September 30 accounting equation.
- Record the September 30 balances on a transactions worksheet and record the October transactions. Total the columns and ensure that the accounting equation balances.
- Calculate net income for the month of October.
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