- Description
ACC 290 Week 1 Apply: Connect Assignment
Complete the Week 1 Assignment in Connect.
Note: You have only 1 attempt available to complete assignments.
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
- Performed services for $6,600 on credit.
- Paid $1,620 in cash for new office chairs.
- Received $10,400 in cash from credit clients.
- Paid $800 in cash for telephone service.
- Sent a check for $2,900 in partial payment of the amount due creditors.
- Paid salaries of $8,900 in cash.
- Sent a check for $1,040 to pay electric bill.
- Performed services for $9,700 in cash.
- Paid $2,270 in cash for auto repairs.
- 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 1 | 15,000 | + | 3,000 | + | 5,800 | + | 33,800 | = | 7,000 | + | 50,600 | + | 0 | − | 0 | |
| Paid for utilities | − 980 | + 980 | ||||||||||||||
| New balances | 14,020 | + | 3,000 | + | 5,800 | + | 33,800 | = | 7,000 | + | 50,600 | + | 0 | − | 980 | |
| Sold services for cash | + 4,980 | + 4,980 | ||||||||||||||
| New balances | 19,000 | + | 3,000 | + | 5,800 | + | 33,800 | = | 7,000 | + | 50,600 | + | 4,980 | − | 980 | |
| Paid a creditor | − 2,100 | − 2,100 | ||||||||||||||
| New balances | 16,900 | + | 3,000 | + | 5,800 | + | 33,800 | = | 4,900 | + | 50,600 | + | 4,980 | − | 980 | |
| Sold services on credit | + 2,900 | + 2,900 | ||||||||||||||
| New balances | 16,900 | + | 5,900 | + | 5,800 | + | 33,800 | = | 4,900 | + | 50,600 | + | 7,880 | − | 980 | |
| Paid salaries | − 8,900 | + 8,900 | ||||||||||||||
| New balances | 8,000 | + | 5,900 | + | 5,800 | + | 33,800 | = | 4,900 | + | 50,600 | + | 7,880 | − | 9,880 | |
| Paid telephone bill | − 314 | + 314 | ||||||||||||||
| New balances | 7,686 | + | 5,900 | + | 5,800 | + | 33,800 | = | 4,900 | + | 50,600 | + | 7,880 | − | 10,194 | |
| Withdrew cash for personal expenses | − 3,000 | − 3,000 | ||||||||||||||
| New balances | 4,686 | + | 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
- The owner invested $87,500 in cash to begin the business.
- Paid $17,850 in cash for the purchase of equipment.
- Purchased additional equipment for $16,200 on credit.
- Paid $9,900 in cash to creditors.
- The owner made an additional investment of $20,500 in cash.
- Performed services for $6,300 in cash.
- Performed services for $8,100 on account.
- Paid $2,100 for rent expense.
- Received $1,600 in cash from credit clients.
- Paid $4,560 in cash for office supplies.
- 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?