ACC 290 Week 1 Practice: Connect® Knowledge Check

Complete the Week 1 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

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

1

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 $100,000 in cash to begin the business.
2. Paid $20,250 in cash for the purchase of equipment.
3. Purchased additional equipment for $15,200 on credit.
4. Paid $12,500 in cash to creditors.
5. The owner made an additional investment of $25,000 in cash.
6. Performed services for $9,750 in cash.
7. Performed services for $7,800 on account.
8. Paid $6,000 for rent expense.
9. Received $5,500 in cash from credit clients.
10. Paid $7,550 in cash for office supplies.
11. The owner withdrew $12,000 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?

2

On December 1, Kate Holmes opened a speech and hearing clinic. During December, her firm had the following transactions involving revenue and expenses.

Paid $3,100 for advertising.

Provided services for $2,800 in cash.

Paid $800 for telephone service.

Paid salaries of $2,600 to employees.

Provided services for $3,000 on credit.

Paid $450 for office cleaning service.

Did the firm earn a net income or incur a net loss for the period? What was the amount?

3

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.

Prepare an income statement for the month of September 2019.

4

The fundamental accounting equations for several businesses follow. Supply the missing amounts.

5

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.

Required:

Prepare a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019.

6

Taylor Equipment Repair Service is owned by Jason Taylor.

Use the above figures to prepare a balance sheet dated February 28, 2019.

Analyze:

What is the net worth, or owner’s equity, at February 28, 2019, for Taylor Equipment Repair Service?