Student Name: Ty Warren

Class: Accounting 2010

Problem 01-29A

Requirement a. :
JOHNSON CONSULTING
Accounting Equation for 2008
Assets = Liabilities + Stockholders' Equity
Notes Common Retained Acct.
Event Cash Land = Payable + Stock Earnings Title/RE
1. Issued Stock 20,000 20,000 NA
2. Revenue 35,000 35,000 Svc. Rev.
3. Loan 25,000 25,000 NA
4. Paid Expenses (22,000) (22,000) Expense
5. Purchased Land (30,000) 30,000 NA
Totals 28,000 30,000 25,000 20,000 13,000
Correct! Correct! Correct! Correct! Correct!

JOHNSON CONSULTING
Accounting Equation for 2009
Assets = Liabilities + Stockholders' Equity
Notes Common Retained Acct.
Event Cash Land = Payable + Stock Earnings Title/RE
Beginning Balance 28,000 30,000 25,000 20,000 13,000
1. Issued Stock 24,000 24,000 NA
2. Revenue 95,000 95,000 Svc. Rev.
3. Paid Loan (15,000) (15,000) NA
4. Paid Expenses (71,500) (71,500) Expense
5. Paid Dividends (3,000) (3,000) Dividends
6. Land Value NA
Totals 57,500 30,000 10,000 44,000 33,500
Correct! Correct! Correct! Correct! Correct!

Requirement b. :
JOHNSON CONSULTING
Income Statements
For the Period Ended December 31
2008 2009
Service Revenue $ 35,000 $ 95,000
Expense 22,000 71,500
Net Income $ 13,000 $ 23,500
Correct! Correct!
 Student Name: Ty Warren
Class: Accounting 2010
Problem 01-29A

Requirement c. :
JOHNSON CONSULTING
Statements of Changes in Stockholders' Equity
For the Period Ended December 31
2008 2009
Beginning Common Stock $ 0 $ 20,000
Plus: Common Stock Issued 20,000 24,000
Ending Common Stock 20,000 44,000
Beginning Retained Earnings 0 13,000
Plus: Net Income 13,000 23,500
Less: Dividends 0 3,000
Ending Retained Earnings 13,000 33,500
Total Stockholder's Equity $ 33,000 $ 77,500
Correct! Correct!

Requirement d. :
JOHNSON CONSULTING
Balance Sheets
As of December 31
2008 2009
Assets
Cash $ 28,000 $ 57,500
Land 30,000 30,000
Total Assets $ 58,000 $ 87,500
Liabilities
Notes Payable $ 25,000 $ 10,000
Stockholders' Equity
Common Stock 20,000 44,000
Retained Earnings 13,000 33,500
Total Stockholders' Equity 33,000 77,500
Total Liabilities and Stockholders' Equity $ 58,000 $ 87,500
Correct! Correct!

Requirement e. :
JOHNSON CONSULTING
Statements of Cash Flows
For the Year Ended December 31
2008 2009
Cash Flows from Operating Activities:
Cash Receipts from Customers $ 35,000 $ 95,000
Cash Payments for Expenses (22,000) (71,500)
Net Cash Flow from Operating Activities 13,000 23,500
Cash Flows from Investing Activities: Correct! Correct!
Cash Payment for Land (30,000) 0
Net Cash Flows from Financing Activities Correct! Correct!
Cash Receipts from Borrowed Funds 25,000 0
Cash Payment of Debt 0 (15,000)
Cash Receipts from Stock Issue 20,000 24,000
Cash Payment for Dividends 0 (3,000)
Net Cash Flow from Financing Activities 45,000 6,000
Correct! Correct!
Net Change in Cash 28,000 29,500
Plus: Beginning Cash Balance 0 28,000
 Student Name: Ty Warren
Class: Accounting 2010
Problem 01-29A

Ending Cash Balance $ 28,000 $ 57,500

Correct! Correct!
Given Data P01-29A:

JOHNSON CONSULTING

Transactions for 2008:

1. Cash acquired from stock issuance $ 20,000

2. Cash received for services 35,000
3. Cash borrowed from creditors 25,000
4. Expenses paid 22,000
5. Land purchase 30,000

Transactions for 2009:

Beginning Cash Balances:

Cash $28,000
Land 30,000
Notes Payable 25,000
Common Stock 20,000
Retained Earnings 13,000

1. Cash acquired from stock issuance $ 24,000

2. Cash received for services 95,000
3. Cash paid to creditors 15,000
4. Expenses paid 71,500
5. Dividend paid 3,000
6. Determined market value of land 47,000