click to play button
click to replay button
1004 P3-8 - Flash (Large) - 20120913 03.30.34PM
    00:00 / 00:00
    theres true a series straight for all in the sense that all we have is a month ago entries compare . and then a very quick question of the NYC operating income for the month ending the center first twenty six we have a company that forms the beginning of December . but transactions for December and most of these productions are no police record so few this as and real time question . okay so lets start Friday on December first you're told we just added common shares of the new company . the straight going into the state . in exchange for six thousand dollars cash . so today December first and we know that cats the company cash is going to go up by six thousand dollars and what we're do's were issued shares in the shareholder for the six thousand dollars number Democratic Apple software common shares which ever . fall the solution and radiant apples . . give those uneasy transaction and I would guess that I know this transactions fairly taking the meaning . I can take for granted that you know how to do this transaction . I is free . Sorry the site shirts are purchase the office equipment and Freddie credit . sorry sir over . Tuesday of this furniture dividend of return are dead for four thousand we pay cash or thousand and eight we competed bounce next six months what we're going to do in the center . is rated debt at furniture and equipment . . four thousand dollars . couldn't rate cash flow one thousand dollars a week a city furniture and equipment . and what we're really with the remainder thirty thousand dollars that we told the suspect is we're going to credit no table . and if I have a balance sheet or sit in a match position at the end of December because is due within say in six months . it would be shown as a current liabilities . the Somerset is completed work or crime immediately call at six thirty dollars in cash for the workouts we did some work . and this is the Somerset and we debtCash because we call at the CC . and within a credit reference . of six eighty . now it's easy . she looks . we completed work for GP developers and Simon invoice for one thousand a seventy five so the work's been done . we've invoice . if the work of the regenerated the revenues but we haven't caught that cash get to in a debt that . accounts for SEO by eighteen seventy five and credit revenues . so we record the revenues well only been paid because they had been completed . this ever seven seats purchase office equipment on credit for three and is so Sorry office supplies hundred and eight . office supplies . three hundred and because it's purchase on credit purchasercredit for purchase on the couch means exactly the same thing . it means that we're setting up of accounts payable . so it credit . accounts payable . for three hundred . and again . she that the end of December at which police office supplies . assuming none of them in the news it has a turn assets on a is some of these office supplies had been used in fat it's we don't have that yes we do that that information will be about is the very very last entry for will be in and teach we're just not enough . so lets move on December twenty eight within whole city and I'm a month received the eighteen seventy five twenty p to dollars . so these are pretty good customers we set up an account receive one that thirty p p S and twenty eight . I mean this is amazing . sigh and that it cash for eighteen seventy five and creditthe four eighteen seventy five so all I'm doing is I'm swapping one asset from the other reducing accounts receivable eighteen seventy five . EPC passed by the cinema . so thirty first . we p one thousand three hundred cash to the opera secretary for December wages . sign and that awaits expense because I'm trying expand . for one thousand three hundred and nine Democrat cash because . you are told . . so again I was so pretty don't you to a separate sheet . I . also rental for the artist a for the center and so looks like or paying the rent a new month which is fine . Sunday that Iran expense . what thousand and credit cash because you're holding a catch . and the last entry in this is still the seventh thirty first performed it out of office supplies which revealed that two hundred of the three hundred worth of office supplies were still on hand . okay so we bought the supplies we quantity of supplies account of three handed . we're telling you now the two hundred is still on and so what we need to do is we need to reduce the office supplies account by one hundred . so off the supplies goes down by one hundred and off the supplies expense on the considerable so I want it . so I simply debt and office supplies expense . . credit office supplies . so why is my hundred . I bring the bounce down to two hundred which is exactly what I wanted to be . the . the question carefully question says What CRT need them for the straight for the month ending a cemetery first twenty six . question does not ask you to prepare and income statement . if a question asking for something what is the operating income just tell me what the operating income is but dollars . so this'll be to think about it meaning you would be wrong to just go through the entries which are Calvin out the numbers up . he provided beta of decals but you don't need provide as much the tells is what would be provided within Agency . so I do . is this and the go through the German prison the first airline to the had an impact on the time stated was on the seven thirty . this on the secretary's he the head revenues . sorry my apologies to Somerset . and there is a six eighty . on December . thirty i and more revenues of one thousand eight seventy five . ninety going . December seventeen no entry . the center twenty seventh twenty eighth know when she not know when the to the income statement . and then we had a lot of entries on the cemetery for us we have the . wages expense . after two hundred been . we have the rent expense . of one thousand . and we have the supplies expense . of one hundred . that's it . yes yes fifty five dollars and that will be operating in time . BJ's a lot of December . depression the last before he considered this is good enough to gives me the answer but also this was an exam question it is enough information for the marker to get the part marks because if he were simply to pop down number on an exam and that never happens to be wrong again exactly this in terms of a mark . but if the you have the wrong number but you're showing that the telcos say for sake of revenue for debt of the supplies expense . and you didn't you fifty five don't expect a marker to read your mind . they're not mind readers and they don't have a crystal ball in from . okay but provide the decals much like and doing here . and you'll get some Part marks and chances are that one lol there that you've made will not cost you a lot on me .