Please help with Accounting Homework?

Posted on 2014-04-11 12:25:00 in Accounting by TJ

S & X Co. is a retail store owned solely by Paul Turner. During the month of November, the equity accounts were affected by the following events: Nov. 9 Turner invested an additional $15,000 in the business. Nov. 15 Turner withdrew $1,500 for his salary for the first two weeks of the month. Nov. 30 Turner withdrew $1,500 for his salary for the second two weeks of the month. Nov. 30 S & X distributed $1,000 of earnings to Turner. a. Assuming that the business is organized as a sole proprietorship: 1. Prepare the journal entries to record the above events in the accounts of S & X. 2. Prepare the closing entries for the month of November. Assume that after closing all of the revenue and expense accounts the Income Summary account has a balance of $5,000. Hint: Record the investment in a separate capital account and the withdrawals (salary) in a separate drawing account. Close the drawing account into the capital account as part of the closing entries.

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Assuming that the business is organized as a corporation:

Explain the causes of the differences in net income between S & X as a sole proprietorship and S & X as a corporation.

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Describe the effects of the business operations on Turner’s individual inc

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