Samson Zeleke recently opened his own accounting firm on April 1, which he operates as a corporation. The name of the new entity is Samson Zeleke , CPA. Samson experienced the following events during the organizing phase of the new business and its first month of operations in 2019: Apr. 5 Shonton deposited Birr 75,000 in a new business bank account titled Samson Zeleke , CPA. The business issued common stock toSamson . 6 Paid Birr300 cash for letterhead stationery for new office. 7 Purchased office furniture for the office on account, Birr9,500. 10 Consulted with tax client and received Birr4,000 for services rendered. 11 Paid utilities, Birr190. 12 Finished tax hearings on behalf of a client and submitted a bill for accounting services, Birr 20,000. 18 Paid office rent, Birr750. 25 Received amount due from client that was billed on April 12. 27 Paid full amount of accounts payable created on April 7. 30 Cash dividends of Birr 3,500 were paid to stockholders. Requirements 1. Analyze the effects of the events on the accounting equation of Samson Zeleke, CPA. Use a format similar to your chapter one handout format (5.5 marks) 2. Prepare the following financial statements: (11 marks ) a. Income statement. b. Statement of retained earnings. c. Balance sheet.

Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000