(ACCT 301 – Fall B, 2014 1)
Assignment:
Week 1

1.

Exercise 1-9 Using the
accounting equation LO A1

Determine the missing amount from
each of the separate situations given below.

2.
Exercise 1-14
Preparing an income statement LO P2

On October 1, Keisha King
organized Real Answers, a new consulting firm; On October 3, the owner contributed
$72,118 cash. On October 31, the company’s records show the following items
and amounts.

Cash

$

10,500

Cash withdrawals by owner

$

2,000

Accounts receivable

21,000

Consulting fees earned

23,000

Office supplies

22,313

Rent expense

4,140

Land

46,000

Salaries expense

9,200

Office equipment

18,000

Telephone expense

760

Accounts payable

39,375

Miscellaneous expenses

580

Owner investments

72,118

Using the above information
prepare an October income statement for the business.

3.

Exercise 1-15
Preparing a statement of owner’s equity LO P2

On October 1, Keisha King organized
Real Answers, a new consulting firm; on October 3, the owner contributed
$62,145 cash. On October 31, the company’s records show the following items
and amounts.

Cash

$

8,600

Cash withdrawals by owner

$

2,000

Accounts receivable

19,000

Consulting fees earned

21,000

Office supplies

18,275

Rent expense

3,780

Land

36,000

Salaries expense

8,400

Office equipment

18,000

Telephone expense

760

Accounts payable

32,250

Miscellaneous expenses

580

Owner investments

62,145

Using the above information
prepare an October statement of owner’s equity for Real Answers.

4.

Exercise 1-16
Preparing a balance sheet LO P2

On October 1, Keisha King organized
Real Answers, a new consulting firm; on October 3, the owner contributed
$75,153 cash. On October 31, the company’s records show the following items
and amounts.

Cash

$

2,250

Cash withdrawals by owner

$

3,360

Accounts receivable

15,000

Consulting fees earned

17,000

Office supplies

4,781

Rent expense

3,060

Land

36,000

Salaries expense

6,800

Office equipment

28,000

Telephone expense

660

Accounts payable

8,438

Miscellaneous expenses

680

Owner investments

75,153

Using the above information
prepare an October 31 balance sheet for Real Answers.

5.

Problem 1-9A Analyzing
effects of transactions LO C4, P1, P2, A1

Isabel Lopez started Biz
Consulting, a new business, and completed the following transactions during
its first year of operations.

a.

I. Lopez invests $67,000 cash and
office equipment valued at $33,000 in the company.

b.

The company purchased a $301,000
building to use as an office. Biz paid $47,000 in cash and signed a note
payable promising to pay the $254,000 balance over the next ten years.

c.

The company purchased office
equipment for $5,400 cash.

d.

The company purchased $3,400 of
office supplies and $1,200 of office equipment on credit.

e.

The company paid a local newspaper
$990 cash for printing an announcement of the office’s opening.

f.

The company completed a financial
plan for a client and billed that client $4,900 for the service.

g.

The company designed a financial
plan for another client and immediately collected an $8,600 cash fee.

h.

Lopez withdrew $1,000 cash from
the company for personal use.

i.

The company received $3,900 cash
as partial payment from the client described in transactionf.

j.

The company made a partial payment
of $600 cash on the equipment purchased in transactiond.

k.

The company paid $2,300 cash for
the office secretary’s wages for this period.

Required:

2.

Enter the amount of each
transaction on individual items of the accounting equation.

3.

Determine the
company’s net income.

6.

Exercise 2-10
Preparing a trial balance LO P2

The transactions of Spade Company:

a.

Kacy Spade, owner, invested
$10,500 cash in the company.

b.

The company purchased office
supplies for $305 cash.

c.

The company purchased $5,807 of
office equipment on credit.

d.

The company received $1,239 cash
as fees for services provided to a customer.

e.

The company paid $5,807 cash to
settle the payable for the office equipment purchased in transactionc.

f.

The company billed a customer
$2,226 as fees for services provided.

g.

The company paid $510 cash for the
monthly rent.

h.

The company collected $935 cash as
partial payment for the account receivable created in transactionf.

i.

Kacy Spade, withdrew $1,000 cash
from the company for personal use.

Prepare the Trial Balance.(The items in the Trial Balance should be
grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses.)

Problem 2-4A Computing
net income from equity analysis, preparing a balance sheet, and computing the
debt ratio LO C2, A1, A2, P3
[The following
information applies to the questions displayed below.]

The accounting records
of Nettle Distribution show the following assets and liabilities as of
December 31, 2012 and 2013.

December 31

2012

2013

Cash

$

48,908

$

8,527

Accounts
receivable

26,548

20,814

Office
supplies

4,188

3,067

Office
equipment

128,552

136,932

Trucks

50,304

59,304

Building

0

167,693

Land

0

41,846

Accounts
payable

69,795

34,616

Note
payable

0

109,539

Late in December 2013,
the business purchased a small office building and land for $209,539. It paid
$100,000 cash toward the purchase and a $109,539 note payable was signed for
the balance. Mr. Nettle had to invest $34,000 cash in the business to enable
it to pay the $100,000 cash. Mr. Nettle withdraws $3,100 cash per month for
personal use.

7.

Problem 2-4A Part 1

Required:

1.

Prepare balance sheets for the
business as of December 31, 2012 and 2013.

8.

Problem 2-4A Part 2

2.

By comparing equity amounts from
the balance sheets and using the additional information presented in this
problem, prepare a calculation to show how much net income was earned by the business
during 2013.

9.

Problem 2-6A Recording
transactions; posting to ledger; preparing a trial balance LO C3, A1, P1, P2

Business transactions completed by
Hannah Venedict during the month of September are as follows.

a.

Venedict invested $86,000 cash
along with office equipment valued at $22,000 in a new sole proprietorship
named HV Consulting.

b.

The company purchased land valued
at $40,000 and a building valued at $155,000. The purchase is paid with
$30,000 cash and a long-term note payable for $165,000.

c.

The company purchased $1,900 of
office supplies on credit.

d.

Venedict invested her personal
automobile in the company. The automobile has a value of $16,200 and is to be
used exclusively in the business.

e.

The company purchased $5,500 of
additional office equipment on credit.

f.

The company paid $1,700 cash
salary to an assistant.

g.

The company provided services to a
client and collected $7,600 cash.

h.

The company paid $630 cash for
this month’s utilities.

i.

The company paid $1,900 cash to
settle the account payable created in transactionc.

j.

The company purchased $20,200 of
new office equipment by paying $20,200 cash.

k.

The company completed $6,250 of
services for a client, who must pay within 30 days.

l.

The company paid $1,900 cash
salary to an assistant.

m.

The company received $3,000 cash
in partial payment on the receivable created in transactionk.

n.

Venedict withdrew $3,000 cash from
the company for personal use.

Required:

1.

Prepare general journal entries to
record these transactions using the following titles: Cash (101); Accounts
Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles
(164); Building (170); Land (172); Accounts Payable (201); Notes Payable
(250); H. Venedict, Capital (301); H. Venedict, Withdrawals (302); Fees
Earned (402); Salaries Expense (601); and Utilities Expense (602)

2.

Open the following
ledger accounts for the account titles referred in part 1 and post the
journal entries from part 1 to the ledger accounts.

3.

Prepare a trial
balance as of the end of September.(The items in the Trial Balance should be grouped as follows:
Assets, Liabilities, Equity, Revenues, and Expenses.)

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