ACC 290T Wk 3 – Practice: Connect Knowledge Check

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ACC 290T Wk 3 - Practice: Connect Knowledge Check
ACC 290T Wk 3 – Practice: Connect Knowledge Check
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ACC 290T Wk 3 – Practice: Connect Knowledge Check

Study Attempts

You should use your earlier attempt(s) as study attempts.

True or False

 

2.GL0204 (No Analysis Tab) – Based on Problem 2-1A LO A1, C3, C4, P1, P2

Grace Labeille opens a web consulting business called Travel Smart and completes the following transactions in its first month of operations.

Prepare journal entries for each transaction and identify the financial statement impact of each entry.

The financial statements are automatically generated based on the journal entries recorded.

Apr. 1 Labeille invested $92,000 cash along with office equipment valued at $28,000 in the company.
Apr. 2 The company prepaid $11,400 cash for 12 months’ rent for office space. The company’s policy is record prepaid expenses in balance sheet accounts.
Apr. 3 The company made credit purchases for $8,400 in office equipment and $4,000 in office supplies. Payment is due within 10 days.
Apr. 6 The company completed services for a client and immediately received $5,200 cash.
Apr. 9 The company completed a $8,000 project for a client, who must pay within 30 days.
Apr. 13 The company paid $12,400 cash to settle the account payable created on April 3.
Apr. 19 The company paid $3,360 cash for the premium on a 12-month insurance policy. The company’s policy is record prepaid expenses in balance sheet accounts.
Apr. 22 The company received $4,800 cash as partial payment for the work completed on April 9.
Apr. 25 The company completed work for another client for $4,300 on credit.
Apr. 28 Labeille withdrew $5,900 cash from the company for personal use.
Apr. 29 The company purchased $1,000 of additional office supplies on credit.
Apr. 30 The company paid $1,100 cash for this month’s utility bill.

 

 

GL0202 (No Analysis Tab) – Based on Exercise 2-9 LO A1

Prepare journal entries for each transaction and identify the financial statement impact of each entry.

The financial statements are automatically generated based on the journal entries recorded.

Jan. 1 Sarah Walker, owner, invested $118,750 cash in the company.
Jan. 2 The company purchased office supplies for $1,850 cash.
Jan. 3 The company purchased $14,050 of office equipment on credit.
Jan. 4 The company received $16,700 cash as fees for services provided to a customer.
Jan. 5 The company paid $14,050 cash to settle the payable for the office equipment purchased on January 3.
Jan. 6 The company billed a customer $3,300 as fees for services provided.
Jan. 7 The company paid $1,825 cash for the monthly rent.
Jan. 8 The company collected $1,575 cash as partial payment for the account receivable created on January 6.
Jan. 9 Sarah Walker withdrew $10,600 cash from the company for personal use.

 

  1. General Journal Tab– For each transaction, prepare the required journal entry on the General Journal tab.  List debits before credits.

  2. General Ledger Tab– One of the advantages of general ledger software is that posting is done automatically.  To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab.

  3. Trial Balance Tab– General ledger software also automates the preparation of trial balances.  A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit.   Total debits should always equal total credits.

  4. Income Statement Tab  – The revenueand expense balances from the trial balance appear on the income statement, along with their balance as of the date selected.  Review the income statement and indicate how the income statement is linked to the other financial statements.

  5. Statement of Owner’s Equity Tab – Owner investmentsand withdrawals, as reported on the trial balance, appear on the statement of owner’s equity.  Review the statement of owner’s equity and indicate how the statement of owner’s equity is linked to the other financial statements.

  6. Balance Sheet Tab  – Each assetand liability account balance, as reported on the trial balance, appears on the balance sheet, along with the ending capital  Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements.