Please use the files that I have uploaded below. Please use the excel spreadsheet for your final document. Thank you in advance. Please create these tables in an excel document. Please create a new sheet for each answer.

Thank you in advance.

1-3A. 

Thefollowing is selected financial information for Affiliated Company as ofDecember 31, 2011: liabilities, $34,000; equity, $56,000; assets, $90,000.

Required

Prepare the balancesheet for Affiliated Company as of December 31, 2011.

1-4A.

Thefollowing is selected financial information for Sun Energy Company for the yearended December 31, 2011: revenues, $65,000; expenses, $50,000; net income,$15,000.

Required

Prepare the 2011calendar-year income statement for Sun Energy Company.

1-8A.

  J. D. Simpson started The SimpsonCo., a new business that began operations on May 1. The Simpson Co. completedthe following transactions during its first month of operations.

May 1J. D. Simpson invested $60,000 cash in the company in exchange for common stock.

1 Thecompany rented a furnished office and paid $3,200 cash for May’s rent.

3 Thecompany purchased $1,680 of office equipment on credit.

5 Thecompany paid $800 cash for this month’s cleaning services.

8 Thecompany provided consulting services for a client and immediately collected$4,600 cash.

12The company provided $3,000 of consulting services for a client on credit.

15The company paid $850 cash for an assistant’s salary for the first half of thismonth.

20The company received $3,000 cash payment for the services provided on May 12.

22The company provided $2,800 of consulting services on credit.

25The company received $2,800 cash payment for the services provided on May 22.

26The company paid $1,680 cash for the office equipment purchased on May 3.

27The company purchased $60 of advertising in this month’s (May) local paper oncredit; cash payment is due June 1.

28The company paid $850 cash for an assistant’s salary for the second half ofthis month.

30The company paid $200 cash for this month’s telephone bill.

30The company paid $480 cash for this month’s utilities.

31The company paid $1,200 cash for dividends.

Required

1. Arrange the followingasset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts

Receivable;Office Equipment; Accounts Payable; Common Stock; Dividends; Revenues; andExpenses.

Chapter 1Introducing Accounting in Business 41

2. Show effects of thetransactions on the accounts of the accounting equation by recording increasesand decreases in the appropriate columns. Do not determine new account balancesafter each transaction. Determine the final total for each account and verifythat the equation is in balance.

3. Prepare an incomestatement for May, a statement of retained earnings for May, a May 31 balancesheet, and a statement of cash flows for May.

2-3A.

  Theaccounting records of Fabiano Distribution show the following assets andliabilities as of December 31,

2010 and 2011.

Late in December 2011, the business purchased a small office buildingand land for $225,000. It paid

$120,000 cash toward the purchase and a $105,000 note payable wassigned for the balance. Mr. Fabiano had to invest $35,000 cash in the business(in exchange for stock) to enable it to pay the $120,000 cash.

The business also pays $3,000 cash per month for dividends.

86 Chapter 2Analyzing and Recording Transactions

Required

1. Preparebalance sheets for the business as of December 31, 2010 and 2011. (Hint: Report only total equity onthe balance sheet and remember that total equity equals the difference betweenassets and liabilities.)

2. Bycomparing equity amounts from the balance sheets and using the additionalinformation presented in this problem, prepare a calculation to show how muchnet income was earned by the business during 2011.

3. Compute the 2011 year-end debt ratio for the business.