ACC 290 Week 1 Apply: Connect® Exercise

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ACC 290 Week 1 Apply: Connect® Exercise
ACC 290 Week 1 Apply: Connect® Exercise
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ACC 290 Week 1 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 1 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

1

Harold Joseph is a painting contractor who specializes in painting commercial buildings. At the beginning of June, his firm’s financial records showed the following assets, liabilities, and owner’s equity.

 
Cash$60,200 
Accounts Receivable 15,800 
Office Furniture 35,000 
Auto 22,700 
Accounts Payable 10,400 
Harold Joseph, Capital 90,700 
Revenue 56,200 
Expenses 23,600 

TRANSACTIONS

  1. Performed services for $6,600 on credit.

  2. Paid $1,620 in cash for new office chairs.

  3. Received $10,400 in cash from credit clients.

  4. Paid $800 in cash for telephone service.

  5. Sent a check for $2,900 in partial payment of the amount due creditors.

  6. Paid salaries of $8,900 in cash.

  7. Sent a check for $1,040 to pay electric bill.

  8. Performed services for $9,700 in cash.

  9. Paid $2,270 in cash for auto repairs.

  10. Performed services for $11,700 on account.

Enter the above transactions in to the following accounting equations.

Analyze:

What is the amount of total assets after all transactions have been recorded?

2

The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.

 Assets=Liab.+Owner’s Equity 
 Cash+Accts.

Rec.

+Supp.+Equip.=Accts.

Pay.

+T.Cotton,

Capital

+Rev.−Exp. 
Balances, May 115,000+3,000+5,800+33,800=7,000+50,600+0−0 
Paid for utilities− 980             + 980 
New balances14,020+3,000+5,800+33,800=7,000+50,600+0−980 
Sold services for cash+ 4,980           + 4,980   
New balances19,000+3,000+5,800+33,800=7,000+50,600+4,980−980 
Paid a creditor− 2,100       − 2,100       
New balances16,900+3,000+5,800+33,800=4,900+50,600+4,980−980 
Sold services on credit  + 2,900         + 2,900   
New balances16,900+5,900+5,800+33,800=4,900+50,600+7,880−980 
Paid salaries− 8,900             + 8,900 
New balances8,000+5,900+5,800+33,800=4,900+50,600+7,880−9,880 
Paid telephone bill− 314             + 314 
New balances7,686+5,900+5,800+33,800=4,900+50,600+7,880−10,194 
Withdrew cash for personal expenses− 3,000         − 3,000     
New balances4,686+5,900+5,800+33,800=4,900+47,600+7,880−10,194 

Required:

Analyze each transaction carefully. Prepare an income statement and a statement of owner’s equity for the month. Prepare a balance sheet for May 31, 2019.

3

On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.

TRANSACTIONS

  1. The owner invested $87,500 in cash to begin the business.

  2. Paid $17,850 in cash for the purchase of equipment.

  3. Purchased additional equipment for $16,200 on credit.

  4. Paid $9,900 in cash to creditors.

  5. The owner made an additional investment of $20,500 in cash.

  6. Performed services for $6,300 in cash.

  7. Performed services for $8,100 on account.

  8. Paid $2,100 for rent expense.

  9. Received $1,600 in cash from credit clients.

  10. Paid $4,560 in cash for office supplies.

  11. The owner withdrew $7,100 in cash for personal expenses.

Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions.

Analyze:

What is the ending balance of cash after all transactions have been recorded?