Exercise 1

Topics: Accounts receivable, Generally Accepted Accounting Principles, Revenue Pages: 5 (442 words) Published: October 29, 2014
Exercise 1
XXXXX
XACC/290
August XX, 2014
XXXXXX

E3-4
Describe each transaction.
1.The company issued shares of stock to stockholders’ equity increased for the month. 2.The company purchased equipment for $1,000 cash and $4,000 on account. 3.The company purchased supplies for $750 cash.

4. The company receives $4,100 in cash revenue and $5,400 in accounts receivable. 5. The company paid $1,500 cash for accounts payable.
6.The company paid a $2,000 dividend.
7.The company paid $800 cash for rent.
8.The company received a payment for accounts receivable. 9.The company paid its employees’ salaries in the amount of $3,000. 10.The company paid their utility expense on account.
Determine how much the stockholders’ equity increased.
The stockholders’ equity increased by $3,600.
Compute the net income for the month.
The net income for the month is $25,600.

E3-9
Journalize
Date ____ Account Title ____ Debit Credit_______________ May 4 Supplies$700
Accounts Payable $700
7 Accounts Receivable $6,800
Service Revenue $6,800
8Accounts Payable $850
Supplies $850
9Cash $1,000
Equipment $1,000
17 Salary $530
Expense $530
29Cash $1200
Prepaid Insurance $1200

3-5A
Journalize
Date ____ Account Title ____ Debit Credit______ April 2012
1Cash $18,000
Common Stock $18,000
2Cash $900
Expenses $900
3 Accounts Payable $1,300
Supplies $1,300
11 Cash $700
Unearned Service Revenue $700
20 Cash $2,800
Service Revenue $2,800
30 Salary $1,500
Expense $1,500
30 Cash $300
Accounts Payable $300

T Ledger

Cash¬¬¬¬¬¬¬_________ _______Common Stock________ ____________Expenses___________ April 1$1800 April 1$18,000 April 2 $900 2 $900 30$1500 11 $700

20 $2800
30 $300

______Accounts Payable______ ________Supplies______ _____Unearned Service Rev.__ April 3 $1300April 3 $1,300April 11 $700 30 $300

__________Service Revenue______
April 20 $2,800

Trial Balance

Towne Architects incorporated
Trial Balance
April 30, 2012
Debit Credit
Cash $6,500 Common Stock $1,800
Expenses $2,400
Accounts Payable$1,300 $300
Supplies $1,300
Unearned Service Revenue $700
Service Revenue $2,800
Salary________________________________________$1,500__________________ Totals$9,300 $9,300

3-6A
T ledgers

______Dividends_______ ______Service Revenues____ __________Salary_____ Oct. 29 $300Oct. 17$600 Oct.15 $1,200

_____Utilities_____ ________Cash________ _____Accounts Payable_____ Oct.31 $400Oct. 5 $1,300 Oct. 20 $1,900
17 $600
20 $1,900
_____Accounts Received____
Oct. 5 $1,300

Journal Including explanations.

____Date____________Account___________________Debit_______________Credit_______________ Oct. 5 Accounts Receivable$1,300
Cash$1,300
(Received payment
from customer)
15 Salary$1,200...
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