# Acc 290 Week 2 Assignment Topics: Accounts receivable, Generally Accepted Accounting Principles, Accounts payable, Accounting software, Invoice / Pages: 3 (510 words) / Published: Mar 27th, 2012

Exercise E-4 a) Describe each transaction 1. \$20,000 in cash is invested in exchange for common stock 2. \$5000 in equipment is received, with \$1000 paid in cash, and \$4000 billed through Accounts Payable 3. \$750 cash is paid for supplies 4. \$9500 in services was preformed, with \$4100 paid for in cash, and \$5400 billed through Accounts Receivable 5. \$1500 was paid to Accounts Payable 6. \$2000 was paid in cash in dividends 7. \$800 cash was paid for rent 8. \$450 cash was received for Accounts Receivable 9. \$3000 cash was paid for salaries 10. \$300 was billed through Accounts Payable for Utilities b) Determine how much stockholders’ equity increased for the month a. 9500-2000-800-3000-300-4000+1500-300= \$200 c) Compute the net income for the month b. 9500-5000-750-1500-800+450-3000-300= -\$1400
Exercise E3-9 Date | Account | Debits | Credits | May 4 | Cash | \$700 | | | Accounts Payable | | \$700 | May 7 | Accounts Receivable | \$6800 | | | Performed services | | \$6800 | May 8 | Accounts Payable | \$850 | | | Supplies | | \$850 | May 9 | Cash | \$1000 | | | Equipment | | \$1000 | May 17 | Cash | \$530 | | | Salary | | \$530 | May 22 | Accounts Payable | \$900 | | | Maintenance | | \$900 | May 29 | Cash | \$1200 | | | Insurance | | \$1200 |

Problem 3-5A
Apr. 1 Stockholders invested \$18,000 cash in exchange for common stock of the corporation.

1 Hired a secretary-receptionist at a salary of \$375 per week, payable monthly.

2 Paid office rent for the month \$900.

Purchased architectural supplies from Spring Green Company |
3

10 Completed blueprints on a carport and billed client \$1,900 for services. 11 Received \$700 cash advance from J. Madison to design a new home. 20 Received \$2,800 cash for services completed and