ACC 205 WEEK 1 ASSIGNMENT

Satisfactory Essays
1. Recognition of normal balances
a. Amounts paid to a mall for rent -expense
b. Amounts to be paid in 10 days- liability
c. A new fax machine purchases for office use- assets
d. Land held as an investment - assets
e. Amounts due from customers -assets
f. Daily sales of merchandise sold - revenue
g. Promotional costs to publicize a concert - expense
h. A long-term loan owed to Citizens Bank -liability
i. The albums, tapes, and CDs held for sale to customers –assets

Normal balance for: liability = credit revenue = credit asset = debit expense = debit

2. Basic journal entries
The following transactions pertain to the Jennifer Royall Company:
General Journal
Date Accounts Debits Credit
May 1 Cash $25,000 Land $15,000 Investment $40,000 Invested cash and land into business
May 5 Revenue $1000 Accounts Receivable $1000 Provided service on account
May 9 Wage Expense $1250 Cash $1250 Paid wages to employees
May 14 Office Equipment $4200 Accounts Payable $4200 Purchased computer on account
May 20 Accounts Receivable $800 Revenue $800 Received partial payment for services on May 5th
May 24 Cash $2500 Loans Payable $2500 Borrowed 6 month loan from BestBanc
3. Balance Sheet Preparation
Preston Company
Balance Sheet
December 31st 20XX
Assets
Cash $21000
Building $40000
Land $21000
Accounts Receivable $24000
Total Assets $106,000
Liabilities
Loan payable $30000
Accounts payable $11000
Total liability $41000
Stockholder’s Equity
J. Preston, Capital $65000
Total Stockholders’ equity $65000
Total Liabilities and equity $106000

4. Basic transaction processing

Assets Liabilities Stockholder’s Equity

Description Cash A/R Office /F Van Acct/Payable CS/ Dividends Revenues/Expenses

Ass./beg/bal $2100 $1800 $5000 $1800 $32000 $300

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