- Description
ACC 290 Week 3 Apply: Connect® Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 3 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
On October 1, 2019, Helen Kennedy opened an advertising agency.
DATE | TRANSACTIONS |
Oct. 1 | Helen Kennedy invested $61,000 cash in the business. |
2 | Paid October office rent of $3,050; issued Check 1001. |
5 | Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days. |
6 | Issued Check 1002 for $3,250 to purchase art equipment. |
7 | Purchased supplies for $1,600; paid with Check 1003. |
10 | Issued Check 1004 for $490 for office cleaning service. |
12 | Performed services for $4,150 in cash and $1,950 on credit. (Use a compound entry.) |
15 | Returned damaged supplies for a cash refund of $290. |
18 | Purchased a computer for $3,050 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.) |
20 | Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., as payment on account for Invoice 6704. |
26 | Performed services for $4,450 on credit. |
27 | Paid $270 for monthly telephone bill; issued Check 1007. |
30 | Received $3,750 in cash from credit customers. |
30 | Mailed Check 1008 to pay the monthly utility bill of $345. |
30 | Issued Checks 1009–1011 for $8,050 for salaries. |
Required:
- Journalize the above transactions.
- Post the above transactions to the ledger accounts.
Analyze:
What is the balance of account 202 in the general ledger?
2
The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.
DATE | TRANSACTIONS | |
Sept. | 1 | Issued Check 1169 for $1,200 to pay the September rent. |
5 | Performed services for $3,200 in cash. | |
6 | Performed services for $2,050 on credit. | |
10 | Paid $560 for monthly telephone bill; issued Check 1170. | |
11 | Paid for equipment repairs of $800 with Check 1171. | |
12 | Received $3,000 on account from credit clients. | |
15 | Issued Checks 1172–1177 for $4,000 for salaries. | |
18 | Issued Check 1178 for $1,800 to purchase supplies. | |
19 | Purchased new tennis rackets for $2,050 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days. | |
20 | Issued Check 1179 for $2,720 to purchase new nets. (Equip.) | |
21 | Received $910 on account from credit clients. | |
21 | Returned a damaged net and received a cash refund of $410. | |
22 | Performed services for $3,400 in cash. | |
23 | Performed services for $4,990 on credit. | |
26 | Issued Check 1180 for $600 to purchase supplies. | |
28 | Paid the monthly electric bill of $2,390 with Check 1181. | |
30 | Issued Checks 1182–1187 for $4,000 for salaries. | |
30 | Issued Check 1188 for $4,000 cash to Ellis Carter for personal expenses. |
Required:
Record each of the above transactions in the general journal.
Analyze:
If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?
3
The following journal entries were prepared by an employee of International Marketing Company who does not have an adequate knowledge of accounting.
GENERAL JOURNAL | PAGE 3 | ||||
Date | Description | Post. Ref. | Debit | Credit | |
2019 | |||||
April | 1 | Accounts Payable | 14,300 | ||
Fees Income | 14,300 | ||||
Performed services on credit | |||||
2 | Cash | 690 | |||
Telephone Expense | 690 | ||||
Paid for March telephone service, Check 1917 | |||||
3 | Office Equipment | 8,720 | |||
Office Supplies | 990 | ||||
Cash | 10,300 | ||||
Purchased file cabinet and office supplies, Check 1918 | |||||
(Assume that Office Equipment and Office Supplies were recorded at the correct values.)
Required:
Examine the above journal entries carefully and prepare the correcting journal entries.
Analyze:
After the correcting journal entries have been posted, what effect do the corrections have on the company’s reported assets?