Week 2 Exercise 1 Copy

Topics: Accounts receivable, Generally Accepted Accounting Principles, Accounts payable Pages: 24 (453 words) Published: December 15, 2014


NAME
Week 2, Exercise 1
November 16, 2014
XACC/290

Week 2, Exercise 1

(a)
1. Stockholders invested $20,000 cash in the business.
2. Purchased equipment for $5,000, paying $1,000 in cash and the balance of $4,000 on account. 3. Paid $750 in cash for supplies.
4. Earned $9,500 in revenue, receiving $4,100 in cash and $5,400 on A/R. 5. Paid $1,500 in cash on accounts Payable.
6. Paid $2,000 in cash dividends to stockholders.
7. Paid $800 in cash as expenses (rent).
8. Earned $450 in cash from consumers on account.
9. Paid $3,000 as salaries.
10. Incurred $300 of utilities expense on account.
(b)
Service Revenue
9,500
Dividends
-2,000
Rent Expense
-800
Salaries Expense
-3,000
Utilities Expense
-300
Total Equity Increase
3,400

(c)
Service Revenue
9,500
Rent Expense
-800
Salaries Expense
-3,000
Utilities Expense
-300
Net Income
5,400

General Journal
Date
Account Titles
Debit
Credit
May 4
Accounts Payable
700

Cash

700

7
Accounts Receivable
6800

Service Revenue

6800

8
Supplies
850

Accounts Payable

850

9
Equipment
1000

Cash

1000

17
Expense
530

Cash

530

22
Expense
900

Accounts Payable

900

29
Accounts Payable
1200

Cash

1200

(a)

General Journal
Date
Account Titles
Debit
Credit
Apr. 1
Cash
18,000

Common Stock

18,000

  (Issued shares of stock for cash)

1
No entry—not a transaction.

2
Rent Expense
   900

Cash

   900

  (Paid monthly office rent)

3
Supplies
 1,300

Accounts Payable

 1,300

  (Purchased supplies on account from Spring Green Company)

10
Accounts Receivable
 1,900

Service Revenue

 1,900

  (Billed clients for services rendered)

11
Cash
   700

Unearned Service Revenue

   700

  (Received cash advance for future service)

20
Cash
 2,800

Service Revenue

 2,800

  (Received cash for revenue earned)

30
Salaries and Wages Expense
 1,500

Cash

 1,500

  (Paid monthly salary)

30
Accounts Payable
   300

Cash

   300

  (Paid Spring Green Company on account)

(b)
Cash
4/118,000 
4/11   700 
4/20 2,800 
 4/2   900
 4/30 1,500
 4/30   300
Bal.18,800 

Accounts Receivable
4/10  1,900 

Bal.  1,900 

Supplies
4/3 1,300 

Bal. 1,300 

Accounts Payable
4/30   300 
 4/3 1,300

 Bal.   1,000

Unearned Service Revenue

 4/11   700

 Bal.   700

Common Stock

 4/118,000

 Bal.18,000

Service Revenue

 4/10  1,900
 4/20 2,800

 Bal. 4,700
Salaries and Wages Expense
4/301,500 

Bal.1,500 

Rent Expense
4/2  900 

Bal.  900 

(c)
TOWNE ARCHITECTS INC.
Trial Balance
April 30, 2012
Account Titles
Debit
Credit
Cash
18,800
 
Accounts Receivable
1,900
 
Supplies
1,300
 
Accounts Payable
 
1,000
Unearned Service Revenue
 
   700
Common Stock
 
 18,000
Service Revenue
 
4,700
Salaries and Wages Expense
1,500
 
Rent Expense
900
 
 
24,400
24,400

(a)
Cash
10/1 Bal.8,200 
10/5 1,300 
 10/151,200
 10/201,900
 10/29  300
 10/31  400
Bal.5,700 

Accounts Receivable
10/1 Bal.2,600 
10/105,100 
 10/5 1,300
Bal.6,400 

Supplies
10/1 Bal.2,100 

Bal. 2,100 

Equipment
10/1 Bal.8,000 

Bal.8,000 

Accounts Payable
10/201,900 
 10/1 Bal.4,800

 Bal.2,900

Unearned Service Revenue
10/17  600 
 10/1 Bal.  1,000

 Bal.  500

Common Stock

 10/1 Bal.15,000

 Bal.15,000

Dividends
10/29  300 

Bal.  300 

Service Revenue

 10/10 5,100
 10/17   600

 Bal. 5,700

Salaries and Wages...
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