- Description
ACC 290T Wk 2 – Apply: Homework
QS 2-6 Analyzing transactions and preparing journal entries LO P1
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
- On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $82,000 in cash along with equipment having a $42,000 value.
- On May 21, Elegant Lawns purchases office supplies on credit for $520.
- On May 25, Elegant Lawns receives $9,000 cash for performing landscaping services.
- On May 30, Elegant Lawns receives $2,200 cash in advance of providing landscaping services to a customer.
QS 2-10 Computing T-account balance LO C4
Determine the ending balance of each of the following T-accounts.
Exercise 2-7 Preparing general journal entries LO P1
Following are the transactions of a new company called Pose-for-Pics.
| Aug. | 1 | Madison Harris, the owner, invested $10,500 cash and $45,150 of photography equipment in the company. | ||
| 2 | The company paid $2,700 cash for an insurance policy covering the next 24 months. | |||
| 5 | The company purchased office supplies for $1,995 cash. | |||
| 20 | The company received $3,500 cash in photography fees earned. | |||
| 31 | The company paid $878 cash for August utilities. |
Prepare general journal entries for the above transactions.
Exercise 2-9 Recording effects of transactions in T-accounts LO A1
The transactions of Spade Company appear below.
- Kacy Spade, owner, invested $17,250 cash in the company.
- The company purchased office supplies for $500 cash.
- The company purchased $9,539 of office equipment on credit.
- The company received $2,035 cash as fees for services provided to a customer.
- The company paid $9,539 cash to settle the payable for the office equipment purchased in transaction c.
- The company billed a customer $3,657 as fees for services provided.
- The company paid $520 cash for the monthly rent.
- The company collected $1,536 cash as partial payment for the account receivable created in transaction f.
- Kacy Spade withdrew $1,000 cash from the company for personal use.
Required:
1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.
Required information
Use the following information for the Quick Studies below.
[The following information applies to the questions displayed below.]
Liu Zhang operates Lawson Consulting, which began operations on June 1. On June 30, the company’s records show the following accounts and amounts for the month of June.
| Cash | $ | 11,000 | Service revenue | $ | 15,600 | |
| Accounts receivable | 5,700 | Equipment | 7,700 | |||
| Accounts payable | 4,700 | Rent expense | 3,200 | |||
| L. Zhang, Withdrawals | 2,700 | Wages expense | 8,000 | |||
QS 2-12 Preparing an income statement LO P3
Use the above information to prepare a June income statement for the business.
QS 2-13 Preparing a statement of owner’s equity LO P3
Use the above information to prepare a June statement of owner’s equity for Lawson Consulting. The owner’s capital account balance at May 31 was $0, and the owner invested $18,000 cash in the company on June 1.
QS 2-14 Preparing a balance sheet LO P3
Use the above information to prepare a June 30 balance sheet for Lawson Consulting. Hint: Compute the owner’s capital account balance as of June 30.
Exercise 2-15 Computing net income LO A1
A sole proprietorship had the following assets and liabilities at the beginning and end of this year.
| Assets | Liabilities | |||||||||
| Beginning of the year | $ | 77,000 | $ | 33,010 | ||||||
| End of the year | 135,000 | 54,675 | ||||||||
- Owner made no investments in the business, and no withdrawals were made during the year.
- Owner made no investments in the business, but withdrew $1,000 cash per month for personal use.
- Owner made no withdrawals during the year, but the owner did invest an additional $45,000 cash.
- Owner withdrew $1,000 cash per month for personal use, and the owner invested an additional $35,000 cash.
Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)
Required information
Use the following information for Exercises 16-18 below.
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August.
| Cash | $ | 25,390 | C. Camry, Withdrawals | $ | 6,030 |
| Accounts receivable | 22,390 | Consulting fees earned | 27,020 | ||
| Office supplies | 5,280 | Rent expense | 9,580 | ||
| Land | 44,030 | Salaries expense | 5,630 | ||
| Office equipment | 20,030 | Telephone expense | 900 | ||
| Accounts payable | 10,580 | Miscellaneous expenses | 540 | ||
Exercise 2-16 Preparing an income statement LO C3, P3
Use the above information to prepare an August income statement for the business.
Exercise 2-17 Preparing a statement of owner’s equity LO P3
Use the above information to prepare an August statement of owner’s equity for Help Today. The owner’s capital account balance at July 31 was $0, and the owner invested $102,200 cash in the company on August 1.
Exercise 2-18 Preparing a balance sheet LO P3