posted by gaba .
We just starting the chapters in accounting in school. We have about 10 problems to do. I will post one problem here and i need someone to show me how exactly they got it, so i understand and it could help me work on the other 9.
here it is-
The comparative Balance Sheets of Savoy Company reported the following selected end-of-year balances:
Assets: Office Supplies inventory- $3,000
liabilities: Unearned Rent Revenue- $9,000
Assets: Office Supplies inventory- $2,000
liabilities: Unearned Rent Revenue- $7,000
The 2010 Income Statement reported the following amounts:
For the Year Ended 12/31/2010
Revenues: Rent Revenue- $18,000
Expenses: Office supplies expenses- $6,000
a. The total amount of office supplies that were purchases during 2010 was: $____________
b. The total amount of cash that was collected from tenanats during 2010 was: $_____________
I would really appreciate if someone can take the time out and just briefly explain how they get the answers to this. So i can do the rest of the 9. they are all very similar.
For future reference, here are some accounting tutorials: