ACC 290 Week 2 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 2 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

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

1. Guttery invested $156,000 in cash to start the business.
2. Paid $5,600 for the current month’s rent.
3. Bought office furniture for $16,320 in cash.
4. Performed services for $7,800 in cash.
5. Paid $1,210 for the monthly telephone bill.
6. Performed services for $13,600 on credit.
7. Purchased a computer and copier for $37,200; paid $12,600 in cash immediately with the balance due in 30 days.
8. Received $6,800 from credit clients.
9. Paid $3,600 in cash for office cleaning services for the month.
10. Purchased additional office chairs for $5,400; received credit terms of 30 days.
11. Purchased office equipment for $36,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
12. Issued a check for $9,000 to pay salaries.
13. Performed services for $14,100 in cash.
14. Performed services for $15,600 on credit.
15. Collected $7,600 on accounts receivable from charge customers.
16. Issued a check for $2,700 in partial payment of the amount owed for office chairs.
17. Paid $660 to a duplicating company for photocopy work performed during the month.
18. Paid $1,180 for the monthly electric bill.
19. Guttery withdrew $8,600 in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:

What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

2

The following occurred during June at Hicks Family Counseling.

Post the following transactions into the appropriate T accounts.

Transactions:

1. Purchased office supplies for $1,900 in cash.
2. Delivered monthly statements, collected fee income of $26,500.
3. Paid the current month’s office rent of $3,900.
4. Completed professional counseling, billed client for $4,100.
5. Client paid fee of $2,100 for weekly counseling, previously billed.
6. Paid office salaries of $3,500.
7. Paid telephone bill of $470.
8. Billed client for $3,100 fee for preparing a counseling evaluation.
9. Purchased office supplies of $990 on account.
10. Paid office salaries of $3,500.
11. Collected $3,100 from client who was billed.
12. Clients paid a total of $9,200 cash in fees.

Analyze:

How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

3

The following transactions took place at Calhoun Counseling Services, a business established by Ronald Calhoun.

Post the following transactions into the appropriate T accounts.

Transactions:

1. Ronald Calhoun invested $65,000 cash in the business.
2. Purchased office furniture for $16,500 in cash.
3. Bought a fax machine for $1,000; payment is due in 30 days.
4. Purchased a used car for the firm for $16,500 in cash.
5. Calhoun invested an additional $10,500 cash in the business.
6. Bought a new computer for $3,500; payment is due in 60 days.
7. Paid $1,000 to settle the amount owed on the fax machine.
8. Calhoun withdrew $4,500 in cash for personal expenses.

Analyze:

Which transactions affected asset accounts? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.