ACCOUNTING PROBLEMS SOLVER

Absolutely, I can help with solving accounting problems. Whether you’re dealing with journal entries, financial statements, cost accounting, or any other accounting issues, here’s a structured approach to tackle common problems:

1. Journal Entries

Problem:

• Record the following transactions in the general journal:
  • Purchased office supplies for $500 on account.
  • Received $1,200 in cash from customers for services provided.
  • Paid $300 for utilities.

Solution:

• Purchased office supplies on account:
   

  Date Account Debit Credit 2024-09-18 Office Supplies $500 Accounts Payable $500
• Received cash from customers:
   

  Date Account Debit Credit 2024-09-18 Cash $1,200 Service Revenue $1,200
• Paid for utilities:
   

  Date Account Debit Credit 2024-09-18 Utilities Expense $300 Cash $300

2. Financial Statements

Problem:

• Prepare a basic income statement from the following trial balance:
  • Revenues: $10,000
  • Cost of Goods Sold: $6,000
  • Operating Expenses: $2,000
  • Interest Expense: $500

Solution:

• Income Statement:
   

  ABC Company Income Statement For the Month Ended September 30, 2024 Revenues $10,000 Cost of Goods Sold (6,000) --------------------- Gross Profit 4,000 Operating Expenses (2,000) -------------- Operating Income 2,000 Interest Expense (500) ------------------ Net Income 1,500

3. Cost Accounting

Problem:

• Calculate the total cost and cost per unit for producing 1,000 units with the following costs:
  • Direct Materials: $3,000
  • Direct Labor: $2,500
  • Manufacturing Overhead: $1,500

Solution:

• Total Cost:
   

  Direct Materials $3,000 Direct Labor $2,500 Manufacturing Overhead $1,500 ----------------- Total Cost $7,000
• Cost Per Unit:
   

  Total Cost / Number of Units = $7,000 / 1,000 units = $7 per unit

4. Break-Even Analysis

Problem:

• Calculate the break-even point in units if the fixed costs are $4,000, the selling price per unit is $50, and the variable cost per unit is $30.

Solution:

• Break-Even Point (in units):
   

  Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) = $4,000 / ($50 - $30) = $4,000 / $20 = 200 units

If you have specific accounting problems or need more detailed solutions, please provide the details, and I can offer more tailored assistance!