ACC 290T Wk 1 – Apply: Homework

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ACC 290T Wk 1 - Apply: Homework
ACC 290T Wk 1 – Apply: Homework
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ACC 290T Wk 1 – Apply: Homework

Study Attempt

It’s highly recommended that you use your first attempt as a study attempt, if needed.

True or False

 

S 1-8 Applying the accounting equation LO A1

  1. Use the accounting equation to compute the missing financial statement amounts.

    2.Use the expanded accounting equation to compute the missing financial statement amounts.

 

Exercise 1-8 Using the accounting equation LO A1

Determine the missing amount from each of the separate situations given below.

 

Required information

Exercise 1-9 Using the accounting equation LO A1

[The following information applies to the questions displayed below.]

Answer the following questions. Hint: Use the accounting equation.

Exercise 1-9 Part a

  1. At the beginning of the year, Addison Company’s assets are $206,000 and its equity is $154,500. During the year, assets increase $80,000 and liabilities increase $51,000. What is the equity at year-end?

Exercise 1-9 Part b

  1. Office Store has assets equal to $240,000 and liabilities equal to $209,000 at year-end. What is the equity for Office Store at year-end?

 

 

Exercise 1-9 Part c

  1. At the beginning of the year, Quaker Company’s liabilities equal $48,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $18,000 during the year. What are the beginning and ending amounts of equity?

 

 

 

QS 1-10 Identifying effects of transactions using accounting equation-Revenues and Expenses LO P1

The following transactions were completed by the company.

  1. The company completed consulting work for a client and immediately collected $6,200 cash earned.
  2. The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days.
  3. The company paid an assistant $1,750 cash as wages for the period.
  4. The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b.
  5. The company paid $840 cash for this period’s cleaning services.

Required:

Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

 

 

 

 

 

QS 1-11 Identifying effects of transactions using accounting equation-Assets and Liabilities LO P1

The following transactions were completed by the company.

  1. The owner (Alex Carr) invested $18,800 cash in the company.
  2. The company purchased supplies for $1,450 cash.
  3. The owner (Alex Carr) invested $11,900 of equipment in the company.
  4. The company purchased $390 of additional supplies on credit.
  5. The company purchased land for $10,900 cash.

Required:

Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

 

 

 

 

Required information

Use the following information for exercise 15 to 18 LO P2

[The following information applies to the questions displayed below.]

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,470 in assets to launch the business. On October 31, the company’s records show the following items and amounts.

 
Cash$9,750 Cash withdrawals by owner$2,530
Accounts receivable 14,480 Consulting revenue 14,480
Office supplies 3,710 Rent expense 4,070
Land 45,970 Salaries expense 7,450
Office equipment 18,450 Telephone expense 810
Accounts payable 8,900 Miscellaneous expenses 630
Owner investments 84,470    

Exercise 1-15 Preparing an income statement LO P2

Using the above information prepare an October income statement for the business.

 

Exercise 1-16 Preparing a statement of owner’s equity LO P2

Using the above information prepare an October statement of owner’s equity for Ernst Consulting.

 

Exercise 1-17 Preparing a balance sheet LO P2

Using the above information prepare an October 31 balance sheet for Ernst Consulting.

 

 

 

 

Exercise 1-18 Preparing a statement of cash flows LO P2

Also assume the following:

  1. The owner’s initial investment consists of $38,500 cash and $45,970 in land.
  2. The company’s $18,450 equipment purchase is paid in cash.
  3. The accounts payable balance of $8,900 consists of the $3,710 office supplies purchase and $5,190 in employee salaries yet to be paid.
  4. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
  5. No cash has been collected on the $14,480 consulting fees earned.

Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)