Problem: 2

Cecil Jameson, Attorney-at-Law, is a proprietorship owned and operated by Cecil Jam

July 1, 2015, Cecil Jameson, Attorney-atLaw, has the following assets and liabilities:
Cash
$
1,000
accounts receivable
3,200
supplies
850
land
10,000
accounts payable
$ 1,530
Total $ 15,050 $ 1,530
Business transactions during July are summarized as follows:
a. Received cash from clients for services,
b. Paid creditors on account,
c. Received cash from Cecil Jameson as an additional investment
d. Paid office rent for the month,
e. Charged clients for legal services on account,
f. Purchased office supplies on account
g. Received cash from clients on account,
h. Received invoice for paralegal services from Legal Aid Inc. for July
(to be paid on August 10),
i. Paid the following expenses:
wages
answering service
utilities
miscellaneous
j. Determined that the cost of office supplies on had was $980:
therefore, the cost of supplies used during the month wa $115.
k. Jameson withdrew $1,000 in cash from the business for
personal use.
Instructions
1. Determine the amount of owner's equity (Cecil Jameson's capital)
as of July 1, 2015

2. State the assets, liabilities, and owner's equity as of July 1, in equation form.
In tabular form below the equation, indicate the increases and decrease resulting
from each transaction and the new balances after each transaction.
3. Prepare an income statement for July, a statement of owner's equity for July,
and a balace sheet as of July 31,2015

d operated by Cecil Jameson. On

g assets and liabilities:

ment

$ 3,928
1,055
3,700
1,200
2,025
245
3,000

for July

115.

capital)

1,635
850
250
325
75
115
1,000

, in equation form.
and decrease resulting
ansaction.
er's equity for July,

Ejercicio: Cecil Jameson, Attoney-at Law

Total $
Account
Balance

Cash
Dr.
3,928
3,700
3,000

10,628

Cr.
1,055
1,200
850
325
250
75
1,000
4,755

(975)

1,055

Account
Balance

$
Total $
Account
Balance

1,880

825

Rent Expense
Dr.
Cr.
1,200
1,200

1,200

Miscelaneous Exp.
Dr.
Cr.
75
Total $
Account
Balance

75
75

1,000

3,700

1,000

Supplies
Cr.

Dr.

Cr.
245

245

130

Fees earned
Dr.
Cr.

3,928
2,025

5,953

5,953

Wages Expense
Dr.
Cr.
850

850

850

$
-

3,700

Land

$
-

Withdrawals
Dr.
Cr.
1,000

Dr.

Account Payable
Dr.
Cr.
1,055 $
1,635
245
Total $

5,873

Account Receivable
Dr.
Cr.
2,025
3,000
Total $
2,025 $
3,000
Account
Balance

Cecil Jameson, Capital

Dr.
Cr.
$
3,700

Utilities Expense
Dr.
Cr.
325

325

325

115

115

115

Paralegal Expense
Dr.
Cr.
1,635

1,635

1,635

$
-

Supplies Expense
Dr.
Cr.
115

$
-

115

Answ. Svc. Expense

Dr.
Cr.
250

250

250

Cecil Jameson, Attorney-at-Law

Work sheet
for the Month Ended July 31, 2015

Account Num.
101
120
150
170
215
400
503
504
501
505
502
506
507
300
310

Account Title
Cash
Account Receivable
Supplies
Land
Accounts Payable
Feed earned
Rent expense
Paralegal expense
Wages expense
Answering service expense
Supplies expense
Utilities expense
Miscellaneous expense
Cecil Jameson, Capital
Cecil Jameson, Drawing
Total

Trial Balance
Dr.
Cr.
1,000
3,200
850
10,000
1,530

13,520
15,050

15,050

Adustments
Adjustment Trial Balance
Dr.
Cr.
Dr.
Cr.
10,628
4,755
6,873
2,025
3,000
2,225
245
115
980
10,000
1,055
1,880
2,355
5,953
5,953
1,200
1,200
1,635
1,635
850
850
250
250
115
115
325
325
75
75
$
3,700
17,220
1,000
1,000
19,403
19,403
25,528
25,528

Cecil Jameson, Attorney at Law

Owner's Equity
For the Month Ended July31 2015

Fees earned
Operating expenses:
Paralegal expense
Rent expense
Wages expense
Utilities expense
Answering service expense
Supplies expense
Miscellaneous expenses
Total operating expenses
Net income

1. Preparar los estado financieros

a. Encabezado
b. balance de cada cuenta
c. totalizar

$ 5,953.00
$ 1,635.00
1,200.00
850.00
325.00
250.00
115.00
75.00
$ 4,450.00
$1,503.00

Cecil Jameson, Attorney at Law

Owner's Equity

Cecil Jameson, capital, July 1, 2015

Additional investment by owner
Net income for the month
Less withdrawals
Increase in owner's equity
Cecil Jameson, capital, July 31, 2015
Assets - Liabilities = Owner's Equity

For the month ended July 31, 2015

$ 13,520.00
$ 3,700.00
1,503.00
$ 5,203.00
1,000.00
4,203.00
$17,723.00

Cecil Jameson, Attorney at Law

Owner's Equity

ed July 31, 2015

Assets
Cash
Accounts receivable
Supplies
Land
Total assets

6,873.00
2,225.00
980.00
10,000.00
$20,078.00

Cecil Jameson, Attorney at Law

Owner's Equity
Balance sheet
July 31,2015
Liabilities
Accounts payable
Owner's Equity
Cecil Jameson, capital
Total liabilities and
Owner's equity

2,355.00
17,723.00

$20,078.00

Cecil Jameson, Attorney at Law

Owner's Equity