Acc 205 Week1 Essay Example
Week One Exercise Assignment
Basic Accounting Equations
1. Recognition of normal balances
The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's viewpoint. Also indicate the normal account balance of each item.
a. The albums, tapes, and CDs held for sale to customers. * Asset; Normal account balance is debit b. A long-term loan owed to Citizens Bank. * Liability; Normal account balance is credit c. Promotional costs to publicize a concert. * Expense; Normal account balance is debit d. Daily sales of merchandise sold, * Revenue; Normal account balance is credit e. Amounts due from customers, * Revenue; Normal account balance is credit f. Land held as an investment, * Asset; Normal account balance is debit g. A new fax machine purchased for office use. * Asset; Normal account balance is debit h. Amounts to be paid in 10 days to suppliers, * Liability; Normal account balance is credit i. Amounts paid to a mall for rent. * Expense; Normal account balance is debit
2. Basic journal entries
The following April transactions pertain to the Jennifer Royall Company:
Apr. 1 | Jennifer Royall invested cash of $15,000 and land valued at $10,000 into the business. | Apr. 5 | Provided $1,200 of services to Jason Ratchford, a client, on account. | Apr. 9 | Paid $250 of salaries to an employee. | Apr. 14 | Acquired a new computer for $3,200, on account. | Apr. 20 | Collected $800 from Jason Ratchford for services provided on April 5. | Apr. 24 | Borrowed $7,500 from BestBanc by securing a six-month loan. |
Prepare journal entries (and explanations) to record the preceding transactions and events. Jennifer Royall Company | Date1 April1 April5 April 9 April14 April 20 April24 April | AccountsCash CapitalOwner invested cash
Basic Accounting Equations
1. Recognition of normal balances
The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's viewpoint. Also indicate the normal account balance of each item.
a. The albums, tapes, and CDs held for sale to customers. * Asset; Normal account balance is debit b. A long-term loan owed to Citizens Bank. * Liability; Normal account balance is credit c. Promotional costs to publicize a concert. * Expense; Normal account balance is debit d. Daily sales of merchandise sold, * Revenue; Normal account balance is credit e. Amounts due from customers, * Revenue; Normal account balance is credit f. Land held as an investment, * Asset; Normal account balance is debit g. A new fax machine purchased for office use. * Asset; Normal account balance is debit h. Amounts to be paid in 10 days to suppliers, * Liability; Normal account balance is credit i. Amounts paid to a mall for rent. * Expense; Normal account balance is debit
2. Basic journal entries
The following April transactions pertain to the Jennifer Royall Company:
Apr. 1 | Jennifer Royall invested cash of $15,000 and land valued at $10,000 into the business. | Apr. 5 | Provided $1,200 of services to Jason Ratchford, a client, on account. | Apr. 9 | Paid $250 of salaries to an employee. | Apr. 14 | Acquired a new computer for $3,200, on account. | Apr. 20 | Collected $800 from Jason Ratchford for services provided on April 5. | Apr. 24 | Borrowed $7,500 from BestBanc by securing a six-month loan. |
Prepare journal entries (and explanations) to record the preceding transactions and events. Jennifer Royall Company | Date1 April1 April5 April 9 April14 April 20 April24 April | AccountsCash CapitalOwner invested cash