Student name: Nguyen Hong Chau Course: Principles of accounting

Student number: 31201028622 Lecturer: Manoj Menon

Homework

#Chapter 1
E1-6 Selected transactions for Green Valley Lawn Care Company are listed below. List the numbers of the
above transactions and describe the effect of each transaction on assets, liabilities, and owner’s equity.

Transactions Effect
1. Made cash investment to start business: Increase in assets and equity.

2. Paid monthly rent: Decrease in assets and equity.

3. Purchased equipment on account: Increase in assets and liabilities

4. Billed customers for services performed: Increase in assets and equity.

5. Withdrew cash for owner’s personal use: Decrease in assets and equity.

6. Received cash from customers billed in (4): Increase in assets and decrease liabilities

7. Incurred advertising expense on account: Increase in liabilities and decrease in equity.

8. Purchased additional equipment for cash: Increase in assets and decrease in assets.

9. Received cash from customers when service was Increase in assets and equity.
performed:

E1-7 Falske Computer Timeshare Company entered into the following transactions during May 2017.
Indicate with the appropriate letter whether each of the transactions above results in:

1. Purchased computers for $20,000 from Digital (c) An increase in assets and an increase in
Equipment on account: liabilities.
2. Paid $4,000 cash for May rent on storage space: (d) A decrease in assets and a decrease in owner’s
equity.
3. Received $17,000 cash from customers for (a) An increase in assets and a decrease in assets.
contracts billed in April:
4. Performed computer services for Viking (b) An increase in assets and an increase in owner’s
equity.
Construction Company for $4,000 cash:

5. Paid Tri-State Power Co. $11,000 cash for energy (d) A decrease in assets and a decrease in owner’s
usage in May: equity.
6. Falske invested an additional $29,000 in the (b) An increase in assets and an increase in owner’s
business: equity.
7. Paid Digital Equipment for the computers (e) A decrease in assets and a decrease in liabilities.
purchased in (1) above:
8. Incurred advertising expense for May of $1,200 (f) An increase in liabilities and a decrease in
owner’s equity.
on account:

P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. The following
transactions occurred during the month of May.
(a) Show the effects of the previous transactions on the accounting equation using the following format.

Assets Liabilities Owner's equity

Date Cash Account Supplies Equipments Notes Accounts Owner’s Owner’s Revenue Expenses
receivable Payable Payable Capital Drawing
1 +$7,000 +$7,000
2 -$900 -$900
3 +$600 +$600
5 -$125 -$125
9 +4,000 +$4,000
12 -$1,000 -$1,000
15 +$5,400 +$5,400
17 -$2,500 -$2,500
20 -$600 -$600
23 +$4,000 -$4,000
26 +$5,000 +$5,000
29 +$4,200 +$4,200
30 -$275 -$275
Total $14,600 $1,400 $600 $4,200 $5,000 $4,200 $7,000 -$1,000 $9,400 -$3,800

Total assets: $14,600+ $1,400+ $600+ $4,200= $5,000+ $4,200+ $7,000 -$1,000 -$9,400 -$3,800
$20,800 = $20,800
(b) Prepare an income statement for the month of May.
MATRIX CONSULTING
Income statement
For the month ended May 31, 2017

Revenues
Service revenue $9,400
Expenses
Rent expense. $900

Advertising expense $125

Salaries expense $2,500

Utilities expense $275

Total expense $3,800

Net income $5,600

(c) Prepare a balance sheet at May 31, 2017.

MATRIX CONSULTING
Income statement
For the month ended May 31, 2017

Assets
Cash $14,600
Account receivable $1,400
Supplies $600
Equipments $4,200
Total assets $20,800
Liabilities and owner’s equity
Liabilities
Notes payable $5,000
Account payable $4,200
Owner’s equity
Owner’s Capital, May 1 $7,000
Add: Net income $5,600
Less: Owner’s Drawing $1,000
Owner’s capital, May 30 $11,600
Total liabilities and owner’s equity $20,800

#Chapter 2
P2-1A Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transactions
occurred during March. Journalize the March transactions.
 GENERAL JOURNAL
Date Account title Ref. Debit Credit
Mar. 1 Cash $20,000
Owner’s capital $20,000
Mar. 3 Land $12,00
Shed $2,000
Equipments $1,000
Cash $15,000
Mar. 5 Advertising expense $900
Cash $900
Mar. 6 One-year insurance $600
Cash $600
Mar. 10 Golf disc and other equipment $1,050
Accounts payable $1,050
Mar. 18 Cash $1,100
Revenue $1,100
Mar. 19 Cash $1,500
Revenue $1,500
Mar. 25 Drawing $800
Cash $800
Mar. 30 Salaries $250
Cash $800
Accounts payable $1,050
Cash $1,050
Mar. 31 Cash $2,700
Revenue $2,700

P2-2A Emily Valley is a licensed dentist. During the first month of the operation of her business, the following events
and transactions occurred.
(a) Journalize the transactions.

GENERAL JOURNAL
Date Account title Ref. Debit Credit
Apr.1 Cash $20,000
Owner's capital $20,000
No entry
Apr. 2 Office rent $1,100
Cash $1,100
Apr. 3 Dental supplies $4,000
Accounts payable $4,000
 Apr. 10 Account receivable $5,100
Service revenue $5,100
Apr. 11 Cash $1,000
Unearned service revenue $1,000
Apr. 20 Cash $2,100
Service revenue $2,100
Apr. 30 Salary expense $2,800
Cash $2,800
Account payable $2,400
Cash $2,400

(b) Post to the ledger accounts.

Cash No.101
Date Explanation Ref. Debit Credit Balance
April 1 Owner's capital $20,000 $20,000
2 Office rent expense $1,100 $18,900
11 Service revenue $1,000 $19,900
20 Service revenue $2,100 $22,000
30 Salary expense $2,800 $19,200
30 Accounts payable $2,400 $16,800

Account receivable No.112

Date Explanation Ref. Debit Credit Balance
April Revenue $5,100 $5,100
10
Supplies No.126
Date Explanation Ref. Debit Credit Balance
April 3 Accounts payable $4,000 $4,000

Account payable No.212

Date Explanation Ref. Debit Credit Balance
April 3 Suppliers $4,000 $4,000
30 Cash $2,400 $1,600

Unearned service revenue No.205

Date Explanation Ref. Debit Credit Balance
April Cash $1,000 $1,000
11
 Owner’s capital No.301
Date Explanation Ref. Debit Credit Balance
April 1 Cash $20,000 $20,000

Service revenue No.400

Date Explanation Ref. Debit Credit Balance
April Accounts receivable $5,100 $5,100
10
20 Cash $2,100 $7,200

Salaries expense No.726

Date Explanation Ref. Debit Credit Balance
April Cash $2,800 $2,800
30
Rent expense No.729
Date Explanation Ref. Debit Credit Balance
April 2 Cash $1,100 $1,100

(c) Prepare a trial balance on April 30, 2017.

HOLZ DICS GOLF COURSE

TRIAL BALANCE
APRIL 30, 2017
Debit Credit
Cash $16,800
Supplies $4,000
Account receivable $5,100
Account payable $1,600
Unearned service revenue $1,000
Owner’s capital $20,000
Service revenue $7,200
Salaries expense $2,800
Rent expense $1,100
Total $29,800 $29,800