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    Assignment-4 and 8

    Uploaded by

    Carla Sader
    The net income was $4 based on the information provided in the Income Summary account. c. What was the balance in the Cash account at the end of the year? $ 1,500

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    © All Rights Reserved
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    Assignment-4 and 8

    Uploaded by

    Carla Sader
    117 views15 pages
    The net income was $4 based on the information provided in the Income Summary account. c. What was the balance in the Cash account at the end of the year? $ 1,500

    Original Description:

    ashworth assignment

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    The net income was $4 based on the information provided in the Income Summary account. c. What was the balance in the Cash account at the end of the year? $ 1,500

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    117 views15 pages

    Assignment-4 and 8

    Uploaded by

    Carla Sader
    The net income was $4 based on the information provided in the Income Summary account. c. What was the balance in the Cash account at the end of the year? $ 1,500

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 15
    At a glance
    Powered by AI
    The key takeaways are the basic accounting equation and how to record transactions that affect assets, liabilities, and owner's equity.

    To record transactions in the basic accounting equation, debit assets for increases and credit assets for decreases. Debit owner's equity for contributions and credit owner's equity for withdrawals.

    To prepare a trial balance, list all accounts and their balances and ensure total debits equal total credits.

    Part A (30 points)

    Record the following transactions in the basic accounting equation:


    a.Brian invests $10,000 cash to begin an accounting service.
    b.The company buys office furniture for cash, $600.
    c.The company buys additional office furniture on account, $300.
    d.The company makes a payment on the office furniture, $200.

    Brian's Accounting Service

    ASSETS = LIABILITIES + OWNER'S EQUITY


    Cash + Office Furniture = Accounts Payable + Brian's Capital

    SOLUTION
    Assets = Liabilities +
    Cash + Office Furniture Accounts payable

    a. $ 10,000 =

    b. $ (600) $ 600 =

    c. $ 300 = $ 300

    d. $ (200) = $ (200)
    Owner's Equity
    Brian's Capital

    $ 10,000
    Part B (40 points)

    The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial b

    Cash $1,370
    Accounts Payable 770
    Office Equipment 900
    Benson, Capital 1,500
    Benson, Withdrawals 500
    Accounts Receivable 1,600
    Service Fees 2,730
    Salaries Expense 630

    Benson Company
    Trial Balance
    June 30, 20xx

    Particulars Debit Credit

    Cash $ 1,370
    Accounts Payable $ 770
    Office equipment $ 900
    Benson, Capital $ 1,500
    Benson, Withdrawals 500
    Accounts receivable 1600
    Service Fees $ 2,730
    Salaries expense $ 630

    $ 5,000 $ 5,000
    une 30, 20xx. Prepare a trial balance in good form.
    Part C (30 points)

    The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place
    transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
    a.Tyler invested $6,500 in the bike service from his personal savings account.
    b.Bought office equipment for cash, $900.
    c.Performed bike service for a customer on account, $1,000.
    d.Company cell phone bill received, but not paid, $80.
    e.Collected $500 from customer in transaction c.
    f.Tyler withdrew $300 for personal use.

    CASH 111
    a capital $ 6,500 b office equipment $ 900
    e Accounts receivabl $ 500 f Tyler's withdrawal $ 300

    c/d $ 5,800
    $ 7,000 $ 7,000

    TYLER'S CAPITAL 311


    a cash $ 6,500

    OFFICE EQUIPMENT 112


    b cash $ 900

    BIKE FEES 411


    c Accounts Receivabl $ 1,000
    ACCOUNTS RECEIVABLE 112
    c service revenue $ 1,000 e cash $ 500

    c/d $ 500
    $ 1,000 $ 1,000

    TELEPHONE EXPENSE 512


    d Phone Payable $ 80

    ACCOUNTS PAYABLE 211


    d Phone Expense $ 80

    TYLER'S WITHDRAWALS 312


    f cash $ 300
    ns below in the T accounts. Place the letter of the
    appropriate.
    Part D (20 points)

    Prepare in proper form journal entries for the following transactions. Omit explanations.

    October
    2 Owner made a cash investment into the company $5,000
    8 Bought supplies on account $100.
    10 Paid salaries, $700
    15 Paid for supplies purchased on October 8
    21 Received company telephone bill, to be paid later, $30

    Date Particulars Debit Credit

    2-Oct Cash $ 5,000


    Capital $ 5,000

    8-Oct Supplies $ 100


    Accounts Payable $ 100

    10-Oct Salaries Expense $ 700


    Cash $ 700

    15-Oct Accounts Payable $ 100


    Cash $ 100

    21-Oct Telepone Expense $ 30


    Telephone Payable $ 30
    Part E (5 points each for a possible total of 50 points)
    Record the following selected transactions for January in a two-column journal, identifying each entry by letter:

    a.Earned $7,000 fees; customer will pay later.


    b.Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
    c.Paid $3,000 for rent for January.
    d.Purchased $2,500 of supplies on account.
    e.A. Allen $1,000 investment in the company.
    f.Received $7,000 in cash for fees earned previously.
    g.Paid $1,200 to creditors on account.
    h.Paid wages of $6,250.
    i.Received $7,150 from customers on account.
    j.A. Allen withdrawal of $1,750.

    Date Particulars Debit Credit

    a Accounts Receivable $ 7,000


    Sales $ 7,000
    to record sales on accoun

    b Equipment $ 45,000
    Cash $ 20,000
    Accounts Payable $ 25,000
    To record the purchase of equipment

    c Rent Expense $ 3,000


    Cash $ 3,000
    To record the rent expense

    d Supplies $ 2,500
    Accounts Payable $ 2,500
    To record the purchase of supplies

    e Cash $ 1,000
    Capital $ 1,000
    To record the investment

    f Cash $ 7,000
    Accounts Receivable $ 7,000
    To record the cash received

    g Accounts Payable $ 1,200


    Cash $ 1,200
    To record the payment made to creditors
    h Wages expense $ 6,250
    Cash $ 6,250
    To record the payment of wages

    i Cash $ 7,150
    Accounts Receivable $ 7,150
    To record the cash received

    j Capital $ 1,750
    Cash $ 1,750
    To record the withdrawal
    h entry by letter:
    Part F

    1.(10 points) From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31
    closing entries without explanation, assuming that a $1,000 withdrawal was made during the period.

    Income Statement
    Account Debit Credit
    Tutoring Fees 3,450 3450
    Wages Expense 700 700
    Rent Expense 600 600
    Supplies Expense 450 450
    Insurance Expense 250 250
    2000 3450
    Net Income 1450
    3450 3450

    Date Particulars Debit Credit

    31-Dec Tutoring fee $ 3,450


    Income statement $ 3,450

    31-Dec Income statement $ 700


    Wages Expense $ 700

    31-Dec Income statement $ 600


    Rent Expense $ 600

    31-Dec Income statement $ 450


    Supplies Expense $ 450

    31-Dec Income statement $ 250


    Insurance Expense $ 250

    31-Dec Income statement $ 1,450


    Capital $ 1,450

    31-Dec Capital $ 1,000


    Cash $ 1,000
    nd's Tutoring at December 31, prepare the
    riod.
    2. (5 points each for a possible total of 20 points) A summary of selected ledger accounts appear below for S. Ball for

    2.(5 points each for a possible total of 20 points) A summary of selected ledger accounts appear below for S. Ball for the curren

    Answer the following questions.


    a.What was the total amount of withdrawals for the year?
    $ 6,500
    b.What was the net income?
    $ 4,250
    c.What was the total revenue?
    $ 17,000
    d.What were the total expenses?
    $ 12,750
    ts appear below for S. Ball for the current calendar year.

    ar below for S. Ball for the current calendar year.

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