- Description
ACC 290T Wk 2 – Practice: Connect Knowledge Check
Exercise 2-19 Analyzing changes in a company’s equity LO P3
Compute the missing amount for each of the following separate companies in columns B through E. (Losses and amounts to be deducted should be indicated with a minus sign.)
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 $8,750 cash and $37,625 of photography equipment in the company. | ||
| 2 | The company paid $3,100 cash for an insurance policy covering the next 24 months. | |||
| 5 | The company purchased office supplies for $1,663 cash. | |||
| 20 | The company received $3,400 cash in photography fees earned. | |||
| 31 | The company paid $875 cash for August utilities. |
Prepare general journal entries for the above transactions.
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 | $ | 25,270 | C. Camry, Withdrawals | $ | 5,910 |
| Accounts receivable | 22,280 | Consulting fees earned | 26,920 | ||
| Office supplies | 5,150 | Rent expense | 9,460 | ||
| Land | 43,940 | Salaries expense | 5,510 | ||
| Office equipment | 19,910 | Telephone expense | 760 | ||
| Accounts payable | 10,700 | Miscellaneous expenses | 430 | ||
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 $101,000 cash in the company on August 1.