- Description
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
- 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
- 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
- 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
- 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.
- The company completed consulting work for a client and immediately collected $6,200 cash earned.
- The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days.
- The company paid an assistant $1,750 cash as wages for the period.
- The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b.
- 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.
- The owner (Alex Carr) invested $18,800 cash in the company.
- The company purchased supplies for $1,450 cash.
- The owner (Alex Carr) invested $11,900 of equipment in the company.
- The company purchased $390 of additional supplies on credit.
- 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:
- The owner’s initial investment consists of $38,500 cash and $45,970 in land.
- The company’s $18,450 equipment purchase is paid in cash.
- 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.
- The company’s rent, telephone, and miscellaneous expenses are paid in cash.
- 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.)