5.Ramirez & Sons Corporation had the following activities during July:
1.Collected cash of $58,000 from customers for services provided in June.
2.Incurred expenses of $50,000, of which 3/4 was paid during July.
3.Provided $84,000 of services to customers on credit.
4.Issued $120,000 of common stock.
6.On July 31, purchased new equipment for $40,000, paying $8,000 and signing a note for the remainder.
7.Paid $10,000 for expenses incurred during June.
For each item, indicate the amount of the effect on Ramirez & Son's net income for July. Indicate revenues with a plus (+) and expenses with a minus (-). If an item as no income effect, enter $0.
Prepare entries in spreadsheet format.
6.The following information is available on December 31, 2007, for Simmons Company:
a.Employees are owed $6,400 for wages they have earned but will not receive until the next regular payroll in ten days.
b.On October 1, 2007, Simmons received a $9,000 check from a tenant to cover the next six month's rent. It was recorded as unearned rent.
c.The supplies account has a $3,800 balance. A physical count indicates that $800 is on hand at year end.
d.Simmons billed customers on December 31 for $5,000 for services performed during the month.
For each situation above, indicate how it affects the accounting system by entering the proper accounts and amounts using the spreadsheet format.