- Description
ACC 290 Week 1 Practice: Connect Practice Assignment
Complete the Week 1 Practice in Connect.
Note: You have unlimited attempts available to complete practice assignments
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
- The owner invested $100,000 in cash to begin the business.
- Paid $20,250 in cash for the purchase of equipment.
- Purchased additional equipment for $15,200 on credit.
- Paid $12,500 in cash to creditors.
- The owner made an additional investment of $25,000 in cash.
- Performed services for $9,750 in cash.
- Performed services for $7,800 on account.
- Paid $6,000 for rent expense.
- Received $5,500 in cash from credit clients.
- Paid $7,550 in cash for office supplies.
- 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.
Cash | $ | 66,200 | ||
Accounts Receivable | 8,000 | |||
Office Supplies | 6,800 | |||
Office Equipment | 75,000 | |||
Accounts Payable | 11,400 | |||
Selena Cantu, Capital, September 1, 2019 | 53,400 | |||
Fees Income | 155,800 | |||
Advertising Expense | 13,000 | |||
Salaries Expense | 32,000 | |||
Telephone Expense | 1,600 | |||
Withdrawals | 18,000 | |||
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.
Cash | $ | 66,200 | ||
Accounts Receivable | 8,000 | |||
Office Supplies | 6,800 | |||
Office Equipment | 75,000 | |||
Accounts Payable | 11,400 | |||
Selena Cantu, Capital, September 1, 2019 | 53,400 | |||
Fees Income | 155,800 | |||
Advertising Expense | 13,000 | |||
Salaries Expense | 32,000 | |||
Telephone Expense | 1,600 | |||
Withdrawals | 18,000 | |||
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.
Cash | $ | 68,600 | ||
Supplies | 12,760 | |||
Accounts Receivable | 26,400 | |||
Equipment | 156,000 | |||
Accounts Payable | 48,000 | |||
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?