5 ramirez sons corporation had the following activities during july 1 collected cash 4352192

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.

5.Borrowed $20,000.

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.

Required:

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.

Alternative requirement:

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.

Required:

For each situation above, indicate how it affects the accounting system by entering the proper accounts and amounts using the spreadsheet format.

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