ACC 290 Entire Course

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 ACC/290

PRINCIPLES OF ACCOUNTING I

 

The Latest Version A+ Study Guide

 

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ACC 290 Entire Course Link

https://uopcourses.com/category/acc-290/

 

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ACC 290 Week 1 Practice: Connect Practice Assignment
 

Complete the Week 1 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments

1

On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.

TRANSACTIONS

 

 

 

The owner invested $100,000 in cash to begin the business.
 

 

Paid $20,250 in cash for the purchase of equipment.
 

 

Purchased additional equipment for $15,200 on credit.
 

 

Paid $12,500 in cash to creditors.
 

 

The owner made an additional investment of $25,000 in cash.
 

 

Performed services for $9,750 in cash.
 

 

Performed services for $7,800 on account.
 

 

Paid $6,000 for rent expense.
 

 

Received $5,500 in cash from credit clients.
 

 

Paid $7,550 in cash for office supplies.
 

 

The owner withdrew $12,000 in cash for personal expenses.
 

 

Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions.

Analyze:

What is the ending balance of cash after all transactions have been recorded?

 

2

On December 1, Kate Holmes opened a speech and hearing clinic. During December, her firm had the following transactions involving revenue and expenses.

Paid $3,100 for advertising.

Provided services for $2,800 in cash.

Paid $800 for telephone service.

Paid salaries of $2,600 to employees.

Provided services for $3,000 on credit.

Paid $450 for office cleaning service.

Did the firm earn a net income or incur a net loss for the period? What was the amount?

3

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash
$
66,200
 
 
Accounts Receivable
 
8,000
 
 
Office Supplies
 
6,800
 
 
Office Equipment
 
75,000
 
 
Accounts Payable
 
11,400
 
 
Selena Cantu, Capital, September 1, 2019
 
53,400
 
 
Fees Income
 
155,800
 
 
Advertising Expense
 
13,000
 
 
Salaries Expense
 
32,000
 
 
Telephone Expense
 
1,600
 
 
Withdrawals
 
18,000
 
 
 
 

Prepare an income statement for the month of September 2019.

 

4

The fundamental accounting equations for several businesses follow. Supply the missing amounts.

5

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash
$
66,200
 
 
Accounts Receivable
 
8,000
 
 
Office Supplies
 
6,800
 
 
Office Equipment
 
75,000
 
 
Accounts Payable
 
11,400
 
 
Selena Cantu, Capital, September 1, 2019
 
53,400
 
 
Fees Income
 
155,800
 
 
Advertising Expense
 
13,000
 
 
Salaries Expense
 
32,000
 
 
Telephone Expense
 
1,600
 
 
Withdrawals
 
18,000
 
 
 
 

Required:

 

Prepare a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019.

 

6

Taylor Equipment Repair Service is owned by Jason Taylor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash
$
68,600
 
 
Supplies
 
12,760
 
 
Accounts Receivable
 
26,400
 
 
Equipment
 
156,000
 
 
Accounts Payable
 
48,000
 
 
 
 

Use the above figures to prepare a balance sheet dated February 28, 2019.

Analyze:

What is the net worth, or owner’s equity, at February 28, 2019, for Taylor Equipment Repair Service?

 

 

 

ACC 290 Week 1 Apply: Connect Assignment
 

Complete the Week 1 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments.

 

1
 

Harold Joseph is a painting contractor who specializes in painting commercial buildings. At the beginning of June, his firm’s financial records showed the following assets, liabilities, and owner’s equity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash
$
60,200
 
 
Accounts Receivable
 
15,800
 
 
Office Furniture
 
35,000
 
 
Auto
 
22,700
 
 
Accounts Payable
 
10,400
 
 
Harold Joseph, Capital
 
90,700
 
 
Revenue
 
56,200
 
 
Expenses
 
23,600
 
 
 
 

TRANSACTIONS

 

 

 

Performed services for $6,600 on credit.
 

 

Paid $1,620 in cash for new office chairs.
 

 

Received $10,400 in cash from credit clients.
 

 

Paid $800 in cash for telephone service.
 

 

Sent a check for $2,900 in partial payment of the amount due creditors.
 

 

Paid salaries of $8,900 in cash.
 

 

Sent a check for $1,040 to pay electric bill.
 

 

Performed services for $9,700 in cash.
 

 

Paid $2,270 in cash for auto repairs.
 

 

Performed services for $11,700 on account.
 

 

Enter the above transactions in to the following accounting equations.

Analyze:

What is the amount of total assets after all transactions have been recorded?

 

2
 

The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Assets
=
Liab.
+
Owner’s Equity
 
 
Cash
+
Accts. 

Rec.
+
Supp.
+
Equip.
=
Accts. 

Pay.
+
T.Cotton, 

Capital
+
Rev.

Exp.
 
Balances, May 1
15,000
+
3,000
+
5,800
+
33,800
=
7,000
+
50,600
+
0

0
 
Paid for utilities
− 980
 
 
 
 
 
 
 
 
 
 
 
 
 
+ 980
 
New balances
14,020
+
3,000
+
5,800
+
33,800
=
7,000
+
50,600
+
0

980
 
Sold services for cash
+ 4,980
 
 
 
 
 
 
 
 
 
 
 
+ 4,980
 
 
 
New balances
19,000
+
3,000
+
5,800
+
33,800
=
7,000
+
50,600
+
4,980

980
 
Paid a creditor
− 2,100
 
 
 
 
 
 
 
− 2,100
 
 
 
 
 
 
 
New balances
16,900
+
3,000
+
5,800
+
33,800
=
4,900
+
50,600
+
4,980

980
 
Sold services on credit
 
 
+ 2,900
 
 
 
 
 
 
 
 
 
+ 2,900
 
 
 
New balances
16,900
+
5,900
+
5,800
+
33,800
=
4,900
+
50,600
+
7,880

980
 
Paid salaries
− 8,900
 
 
 
 
 
 
 
 
 
 
 
 
 
+ 8,900
 
New balances
8,000
+
5,900
+
5,800
+
33,800
=
4,900
+
50,600
+
7,880

9,880
 
Paid telephone bill
− 314
 
 
 
 
 
 
 
 
 
 
 
 
 
+ 314
 
New balances
7,686
+
5,900
+
5,800
+
33,800
=
4,900
+
50,600
+
7,880

10,194
 
Withdrew cash for personal expenses
− 3,000
 
 
 
 
 
 
 
 
 
− 3,000
 
 
 
 
 
New balances
4,686
+
5,900
+
5,800
+
33,800
=
4,900
+
47,600
+
7,880

10,194
 
 
 

Required:

Analyze each transaction carefully. Prepare an income statement and a statement of owner’s equity for the month. Prepare a balance sheet for May 31, 2019.

 

 
 

 

ACC 290 Week 2 Practice: Connect Practice Assignment
 

Complete the Week 2 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments

 

1
 

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash
(a)
95,000
(b)
23,000
 
(d)
15,000
(e)
350
 
(g)
1,500
(h)
5,500
 
 
 
(i)
2,500
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment
(c)
40,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable
(f)
5,000
(g)
1,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts Payable
 
 
(c)
40,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplies
(b)
23,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wade Wilson, Capital
 
 
(a)
95,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fees Income
 
 
(d)
15,000
 
 
 
(f)
5,000
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telephone Expense
(e)
350
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wade Wilson, Drawing
(i)
2,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries Expense
(h)
5,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Determine the balance of each account.

 

 

2
 

Derrick Wells decided to start a dental practice. The first five transactions for the business follow.

 

 

 

Derrick invested $45,000 cash in the business.
 

 

Paid $15,000 in cash for equipment.
 

 

Performed services for cash amounting to $4,500.
 

 

Paid $1,900 in cash for advertising expense.
 

 

Paid $1,500 in cash for supplies.
 

 

(1) Select which two accounts are affected in each of the above transactions.

(2&3) Post the above transactions into the appropriate T accounts.

 

 

3
 

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

 

 

 

Guttery invested $80,000 in cash to start the business.
 

 

Paid $3,000 for the current month’s rent.
 

 

Bought office furniture for $8,360 in cash.
 

 

Performed services for $4,100 in cash.
 

 

Paid $625 for the monthly telephone bill.
 

 

Performed services for $7,000 on credit.
 

 

Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.
 

 

Received $3,500 from credit clients.
 

 

Paid $2,000 in cash for office cleaning services for the month.
 

 

Purchased additional office chairs for $2,900; received credit terms of 30 days.
 

 

Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
 

 

Issued a check for $4,700 to pay salaries.
 

 

Performed services for $7,250 in cash.
 

 

Performed services for $8,000 on credit.
 

 

Collected $4,000 on accounts receivable from charge customers.
 

 

Issued a check for $1,450 in partial payment of the amount owed for office chairs.
 

 

Paid $350 to a duplicating company for photocopy work performed during the month.
 

 

Paid $610 for the monthly electric bill.
 

 

Guttery withdrew $4,500 in cash for personal expenses.
 

 

Post the above transactions into the appropriate T accounts.

Analyze:

What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

 

 

4
 

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local Housing rentals.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash
(a)
95,000
(b)
23,000
 
(d)
15,000
(e)
350
 
(g)
1,500
(h)
5,500
 
 
 
(i)
2,500
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment
(c)
40,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable
(f)
5,000
(g)
1,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts Payable
 
 
(c)
40,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplies
(b)
23,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wade Wilson, Capital
 
 
(a)
95,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fees Income
 
 
(d)
15,000
 
 
 
(f)
5,000
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telephone Expense
(e)
350
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wade Wilson, Drawing
(i)
2,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries Expense
(h)
5,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Required:

Prepare a statement of owner’s equity and a balance sheet for Residential Relocators as of December 31, 2019.

 

 

5
 

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash
(a)
95,000
(b)
23,000
 
(d)
15,000
(e)
350
 
(g)
1,500
(h)
5,500
 
 
 
(i)
2,500
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment
(c)
40,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable
(f)
5,000
(g)
1,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts Payable
 
 
(c)
40,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplies
(b)
23,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wade Wilson, Capital
 
 
(a)
95,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fees Income
 
 
(d)
15,000
 
 
 
(f)
5,000
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telephone Expense
(e)
350
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wade Wilson, Drawing
(i)
2,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries Expense
(h)
5,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Required:

Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.

 

 

6
 

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019.

Transactions:

 

 

 

Guttery invested $80,000 in cash to start the business.
 

 

Paid $3,000 for the current month’s rent.
 

 

Bought office furniture for $8,360 in cash.
 

 

Performed services for $4,100 in cash.
 

 

Paid $625 for the monthly telephone bill.
 

 

Performed services for $7,000 on credit.
 

 

Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.
 

 

Received $3,500 from credit clients.
 

 

Paid $2,000 in cash for office cleaning services for the month.
 

 

Purchased additional office chairs for $2,900; received credit terms of 30 days.
 

 

Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
 

 

Issued a check for $4,700 to pay salaries.
 

 

Performed services for $7,250 in cash.
 

 

Performed services for $8,000 on credit.
 

 

Collected $4,000 on accounts receivable from charge customers.
 

 

Issued a check for $1,450 in partial payment of the amount owed for office chairs.
 

 

Paid $350 to a duplicating company for photocopy work performed during the month.
 

 

Paid $610 for the monthly electric bill.
 

 

Guttery withdrew $4,500 in cash for personal expenses.
 

 

Required:

Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 2019. Determine the account balances before you start work on the financial statements.

Analyze:

What is the change in owner’s equity for the month of June?

 

 
 

 

 
 

 

ACC 290 Week 2 Apply: Connect Assignment
 

Complete the Week 2 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

 

1
 

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

 

 

 

Guttery invested $156,000 in cash to start the business.
 

 

Paid $5,600 for the current month’s rent.
 

 

Bought office furniture for $16,320 in cash.
 

 

Performed services for $7,800 in cash.
 

 

Paid $1,210 for the monthly telephone bill.
 

 

Performed services for $13,600 on credit.
 

 

Purchased a computer and copier for $37,200; paid $12,600 in cash immediately with the balance due in 30 days.
 

 

Received $6,800 from credit clients.
 

 

Paid $3,600 in cash for office cleaning services for the month.
 

 

Purchased additional office chairs for $5,400; received credit terms of 30 days.
 

 

Purchased office equipment for $36,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
 

 

Issued a check for $9,000 to pay salaries.
 

 

Performed services for $14,100 in cash.
 

 

Performed services for $15,600 on credit.
 

 

Collected $7,600 on accounts receivable from charge customers.
 

 

Issued a check for $2,700 in partial payment of the amount owed for office chairs.
 

 

Paid $660 to a duplicating company for photocopy work performed during the month.
 

 

Paid $1,180 for the monthly electric bill.
 

 

Guttery withdrew $8,600 in cash for personal expenses.
 

 

Post the above transactions into the appropriate T accounts.

Analyze:

What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

 

 

2
 

The following occurred during June at Hicks Family Counseling.

Post the following transactions into the appropriate T accounts.

Transactions:

 

 

 

Purchased office supplies for $1,900 in cash.
 

 

Delivered monthly statements, collected fee income of $26,500.
 

 

Paid the current month’s office rent of $3,900.
 

 

Completed professional counseling, billed client for $4,100.
 

 

Client paid fee of $2,100 for weekly counseling, previously billed.
 

 

Paid office salaries of $3,500.
 

 

Paid telephone bill of $470.
 

 

Billed client for $3,100 fee for preparing a counseling evaluation.
 

 

Purchased office supplies of $990 on account.
 

 

Paid office salaries of $3,500.
 

 

Collected $3,100 from client who was billed.
 

 

Clients paid a total of $9,200 cash in fees.
 

 

Analyze:

How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

 

 
 

 

 
 

 

ACC 290 Week 3 Practice: Connect Practice Assignment
 

Complete the Week3 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments

 

1
 

On October 1, 2019, Helen Kennedy opened an advertising agency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
Oct. 1
Helen Kennedy invested $70,000 cash in the business.
2
Paid October office rent of $4,000; issued Check 1001.
5
Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.
6
Issued Check 1002 for $4,100 to purchase art equipment.
7
Purchased supplies for $1,670; paid with Check 1003.
10
Issued Check 1004 for $800 for office cleaning service.
12
Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.)
15
Returned damaged supplies for a cash refund of $300.
18
Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days. (Use one compound entry.)
20
Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.
26
Performed services for $4,800 on credit.
27
Paid $375 for monthly telephone bill; issued Check 1007.
30
Received $4,200 in cash from credit customers.
30
Mailed Check 1008 to pay the monthly utility bill of $1,080.
30
Issued Checks 1009–1011 for $9,000 for salaries.
 

Required:

 

 

 

Journalize the above transactions.
 

 

Post the above transactions to the ledger accounts.
 

 

 

Analyze:

What is the balance of account 202 in the general ledger?

 

 

2
 

The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
Sept.
1
Issued Check 1169 for $2,000 to pay the September rent.
 
5
Performed services for $4,000 in cash.
 
6
Performed services for $2,950 on credit.
 
10
Paid $900 for monthly telephone bill; issued Check 1170.
 
11
Paid for equipment repairs of $1,050 with Check 1171.
 
12
Received $1,500 on account from credit clients.
 
15
Issued Checks 1172–1177 for $5,200 for salaries.
 
18
Issued Check 1178 for $2,700 to purchase supplies.
 
19
Purchased new tennis rackets for $3,250 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.
 
20
Issued Check 1179 for $3,820 to purchase new nets. (Equip.)
 
21
Received $500 on account from credit clients.
 
21
Returned a damaged net and received a cash refund of $570.
 
22
Performed services for $3,480 in cash.
 
23
Performed services for $5,050 on credit.
 
26
Issued Check 1180 for $620 to purchase supplies.
 
28
Paid the monthly electric bill of $2,500 with Check 1181.
 
30
Issued Checks 1182–1187 for $5,200 for salaries.
 
30
Issued Check 1188 for $5,000 cash to Ellis Carter for personal expenses.
 

Required:

Record each of the above transactions in the general journal.

Analyze:

If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?

 

 

 

3
 

Selected activity of Mason Consulting Services follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
2019
 
Sept.
1
Zack Mason invested $30,000 in cash to start the firm.
 
 
4
Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
 
 
16
Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.
 
 
20
Purchased supplies for $260; paid immediately with Check 1002.
 
 
23
Returned damaged supplies for a cash refund of $85.
 
 
30
Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.
 
 
30
Withdrew $1,500 in cash for personal expenses.
 
 
30
Issued Check 1004 for $3,500 to pay the rent for October.
 
 
30
Performed services for $7,325 in cash.
 
 
30
Paid $220 for monthly telephone bill, Check 1005.
 

Post the above transactions into the appropriate Ledger accounts.

 

 

4
 

The following transactions took place at the Cook Employment Agency during November 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
Nov.
5
 
Performed services for Job Search, Inc., for $20,000; received $9,500 in cash and the client promised to pay the balance in 60 days.
 
18
 
Purchased a graphing calculator for $450 and some supplies for $600 from Office Supply; issued Check 1008 for the total.
 
23
 
Received Invoice 1602 for $2,500 from Automotive Technicians Repair for repairs to the firm’s automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days.
 

Prepare journal entries for the above transactions.

 

 

 

5
 

Selected activity of the Ray Shipping Service follow.

TRANSACTIONS

 

 

 

Gave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.)
 

 

Sent a check for $1,050 to the utility company to pay the monthly bill.
 

 

Provided services for $7,800 on credit.
 

 

Purchased new equipment for $4,600 and paid for it immediately by check.
 

 

Issued a check for $3,500 to pay a creditor on account.
 

 

Performed services for $15,250 in cash.
 

 

Collected $6,250 from credit customers.
 

 

The owner made an additional investment of $25,000 in cash.
 

 

Purchased supplies for $3,250 on credit.
 

 

Issued a check for $3,750 to pay the monthly rent.
 

 

 

Analyze the above transactions and record a journal entry for each transaction.

 

 

6
 

Selected activity of Mason Consulting Services follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
2019
 
Sept.
1
Zack Mason invested $30,000 in cash to start the firm.
 
 
4
Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
 
 
16
Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.
 
 
20
Purchased supplies for $260; paid immediately with Check 1002.
 
 
23
Returned damaged supplies for a cash refund of $85.
 
 
30
Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.
 
 
30
Withdrew $1,500 in cash for personal expenses.
 
 
30
Issued Check 1004 for $3,500 to pay the rent for October.
 
 
30
Performed services for $7,325 in cash.
 
 
30
Paid $220 for monthly telephone bill, Check 1005.
 

Prepare journal entries for the transactions incurred during September of 2019.

 

 
 

 

 
 

 

ACC 290 Week 3 Apply: Connect Assignment
 

Complete the Week 3 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

 

1
 

On October 1, 2019, Helen Kennedy opened an advertising agency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
Oct. 1
Helen Kennedy invested $61,000 cash in the business.
2
Paid October office rent of $3,050; issued Check 1001.
5
Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.
6
Issued Check 1002 for $3,250 to purchase art equipment.
7
Purchased supplies for $1,600; paid with Check 1003.
10
Issued Check 1004 for $490 for office cleaning service.
12
Performed services for $4,150 in cash and $1,950 on credit. (Use a compound entry.)
15
Returned damaged supplies for a cash refund of $290.
18
Purchased a computer for $3,050 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.)
20
Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.
26
Performed services for $4,450 on credit.
27
Paid $270 for monthly telephone bill; issued Check 1007.
30
Received $3,750 in cash from credit customers.
30
Mailed Check 1008 to pay the monthly utility bill of $345.
30
Issued Checks 1009–1011 for $8,050 for salaries.
 

Required:

 

 

 

Journalize the above transactions.
 

 

Post the above transactions to the ledger accounts.
 

 

 

Analyze:

What is the balance of account 202 in the general ledger?

 

2
 

The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
Sept.
1
Issued Check 1169 for $1,200 to pay the September rent.
 
5
Performed services for $3,200 in cash.
 
6
Performed services for $2,050 on credit.
 
10
Paid $560 for monthly telephone bill; issued Check 1170.
 
11
Paid for equipment repairs of $800 with Check 1171.
 
12
Received $3,000 on account from credit clients.
 
15
Issued Checks 1172–1177 for $4,000 for salaries.
 
18
Issued Check 1178 for $1,800 to purchase supplies.
 
19
Purchased new tennis rackets for $2,050 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.
 
20
Issued Check 1179 for $2,720 to purchase new nets. (Equip.)
 
21
Received $910 on account from credit clients.
 
21
Returned a damaged net and received a cash refund of $410.
 
22
Performed services for $3,400 in cash.
 
23
Performed services for $4,990 on credit.
 
26
Issued Check 1180 for $600 to purchase supplies.
 
28
Paid the monthly electric bill of $2,390 with Check 1181.
 
30
Issued Checks 1182–1187 for $4,000 for salaries.
 
30
Issued Check 1188 for $4,000 cash to Ellis Carter for personal expenses.
 

Required:

Record each of the above transactions in the general journal.

Analyze:

If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?

 

 
 

 

 
 

 

ACC 290 Week 4 Practice: Connect Practice Assignment
 

Complete the Week 4 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments.

 

attempt 1
 

 

1
 

 

 

 

On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a seven-month period. The $8,400 was debited to thePrepaid Rent
 

 

On June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand.
 

 

 

 

 

On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation.
 

 

 

2
 

The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CANTU CORPORATION 

Worksheet

Month Ended December 31, 2019
 
 
Trial Balance
 
 
Adjustments
 
 
Adjusted Trial Balance
 
 
Income Statement
 
 
Balance Sheet
 
 
Account Name
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Cash
 
39,100
 
 
 
 
 
 
 
 
 
 
 
39,100
 
 
 
 
 
 
 
 
 
 
 
39,100
 
 
 
 
 
Accounts Receivable
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
 
 
 
Supplies
 
6,050
 
 
 
 
 
 
 
 
3,500
 
 
6,050
 
 
 
 
 
 
 
 
 
 
 
2,550
 
 
 
 
 
Prepaid Advertising
 
10,200
 
 
 
 
 
 
 
 
1,700
 
 
10,200
 
 
 
 
 
 
 
 
 
 
 
8,500
 
 
 
 
 
Equipment
 
42,500
 
 
 
 
 
 
 
 
 
 
 
42,500
 
 
 
 
 
 
 
 
 
 
 
42,500
 
 
 
 
 
Accumulated Depreciation—Equipment
 
 
 
 
 
 
 
 
 
 
850
 
 
 
 
 
850
 
 
 
 
 
 
 
 
 
 
 
850
 
 
Accounts Payable
 
 
 
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
Selena Cantu, Capital
 
 
 
 
54,500
 
 
 
 
 
 
 
 
 
 
 
54,500
 
 
 
 
 
 
 
 
 
 
 
54,500
 
 
Selena Cantu, Drawing
 
4,100
 
 
 
 
 
 
 
 
 
 
 
4,100
 
 
 
 
 
 
 
 
 
 
 
4,100
 
 
 
 
 
Fees Income
 
 
 
 
57,750
 
 
 
 
 
 
 
 
 
 
 
57,750
 
 
 
 
 
57,750
 
 
 
 
 
 
 
 
Supplies Expense
 
 
 
 
 
 
 
3,500
 
 
 
 
 
3,500
 
 
 
 
 
3,500
 
 
 
 
 
 
 
 
 
 
 
Advertising Expense
 
 
 
 
 
 
 
1,700
 
 
 
 
 
1,700
 
 
 
 
 
1,700
 
 
 
 
 
 
 
 
 
 
 
Depreciation Expense-Equipment
 
 
 
 
 
 
 
850
 
 
 
 
 
850
 
 
 
 
 
850
 
 
 
 
 
 
 
 
 
 
 
Salaries Expense
 
8,900
 
 
 
 
 
 
 
 
 
 
 
8,900
 
 
 
 
 
8,900
 
 
 
 
 
 
 
 
 
 
 
Utilities Expense
 
1,400
 
 
 
 
 
 
 
 
 
 
 
1,400
 
 
 
 
 
1,400
 
 
 
 
 
 
 
 
 
 
 
Totals
 
118,750
 
 
118,750
 
 
6,050
 
 
6,050
 
 
119,600
 
 
119,600
 
 
16,350
 
 
57,750
 
 
103,250
 
 
61,850
 
 
Net Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,400
 
 
 
 
 
 
 
 
41,400
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57,750
 
 
57,750
 
 
103,250
 
 
103,250
 
 
 
 

Required:

 

 

 

Prepare an income statement.
 

 

Prepare a statement of owner’s equity. The owner made no additional investments during the month.
 

 

Prepare a balance sheet.
 

 

Analyze:

If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted?

 

 

3
 

Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500; depreciation expense, $4,100; and supplies used, $1,800.

Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?

 

 

4
 

Desoto Company must make three adjusting entries on December 31, 2019.

 

 

 

Supplies used, $5,500 (supplies totaling $9,000 were purchased on December 1, 2019, and debited to the Suppliesaccount).
 

 

Expired insurance, $4,100; on December 1, 2019, the firm paid $24,600 for six months’ insurance coverage in advance and debitedPrepaid Insurancefor this amount.
 

 

Depreciation expense for equipment, $2,900.
 

 

Required:

Prepare the journal entries for these adjustments and post the entries to the general ledger accounts

 

 

5
 

The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below.

Appropriate adjustments have been made for the following items:

 

 

 

Supplies used during the month, $2,900.
 

 

Expired rent for the month, $3,500.
 

 

Depreciation expense for the month, $950.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIVERSITY BOOK STORE 

Adjusted Trial Balance

November 30, 2019
Account Name
 
Debit
 
 
Credit
 
Cash
$
23,075
 
 
 
 
Accounts Receivable
 
3,812
 
 
 
 
Supplies
 
4,600
 
 
 
 
Prepaid Rent
 
21,000
 
 
 
 
Equipment
 
27,500
 
 
 
 
Accumulated Depreciation-Equipment
 
 
 
$
950
 
Accounts Payable
 
 
 
 
9,000
 
Ruby Darbandi, Capital
 
 
 
 
41,837
 
Ruby Darbandi, Drawing
 
4,000
 
 
 
 
Fees Income
 
 
 
 
48,550
 
Depreciation Expense-Equipment
 
950
 
 
 
 
Rent Expense
 
3,500
 
 
 
 
Salaries Expense
 
8,500
 
 
 
 
Supplies Expense
 
2,900
 
 
 
 
Utilities Expense
 
500
 
 
 
 
Totals
$
100,337
 
$
100,337
 
 
 

Required:

 

 

 

Record the adjusting entries in the Adjustments columns.
 

 

Complete the Trial Balance columns of the worksheet prior to making the adjusting entries.
 

 

Analyze:

What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

 

 

6
 

On January 31, 2019, the general ledger of Palmer Company showed the following account balances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCOUNTS
 
Cash
31,500
Accounts Receivable
11,250
Supplies
4,500
Prepaid Insurance
4,100
Equipment
45,750
Accum. Depr.—Equip.
0
Accounts Payable
8,350
Sadie Palmer, Capital
40,975
Fees Income
58,500
Depreciation Exp.—Equip.
0
Insurance Expense
0
Rent Expense
5,300
Salaries Expense
5,425
Supplies Expense
0
 
 

Additional information:

 

 

 

 

Supplies used during January totaled $2,850.
 

 

Expired insurance totaled $1,025.
 

 

Depreciation expense for the month was $925.
 

 

Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January.

 

 

attempt 2
 

 

1
 

On January 31, 2019, the general ledger of Palmer Company showed the following account balances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCOUNTS
 
Cash
31,500
Accounts Receivable
11,250
Supplies
4,500
Prepaid Insurance
4,100
Equipment
45,750
Accum. Depr.—Equip.
0
Accounts Payable
8,350
Sadie Palmer, Capital
40,975
Fees Income
58,500
Depreciation Exp.—Equip.
0
Insurance Expense
0
Rent Expense
5,300
Salaries Expense
5,425
Supplies Expense
0
 
 

Additional information:

 

 

 

 

Supplies used during January totaled $2,850.
 

 

Expired insurance totaled $1,025.
 

 

Depreciation expense for the month was $925.
 

 

Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January.

2

Desoto Company must make three adjusting entries on December 31, 2019.

 

 

 

Supplies used, $5,500 (supplies totaling $9,000 were purchased on December 1, 2019, and debited to the Suppliesaccount).
 

 

Expired insurance, $4,100; on December 1, 2019, the firm paid $24,600 for six months’ insurance coverage in advance and debitedPrepaid Insurancefor this amount.
 

 

Depreciation expense for equipment, $2,900.
 

 

Required:

Prepare the journal entries for these adjustments and post the entries to the general ledger accounts

 

 

3
 

Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500; depreciation expense, $4,100; and supplies used, $1,800.

Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?

4

 

 

 

On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a seven-month period. The $8,400 was debited to thePrepaid Rent
 

 

On June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand.
 

 

On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation.
 

 

Prepare end-of-June adjusting entries for Cain Company.

 

5
 

The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CANTU CORPORATION 

Worksheet

Month Ended December 31, 2019
 
 
Trial Balance
 
 
Adjustments
 
 
Adjusted Trial Balance
 
 
Income Statement
 
 
Balance Sheet
 
 
Account Name
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Debit
 
 
Credit
 
 
Cash
 
39,100
 
 
 
 
 
 
 
 
 
 
 
39,100
 
 
 
 
 
 
 
 
 
 
 
39,100
 
 
 
 
 
Accounts Receivable
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
 
 
 
Supplies
 
6,050
 
 
 
 
 
 
 
 
3,500
 
 
6,050
 
 
 
 
 
 
 
 
 
 
 
2,550
 
 
 
 
 
Prepaid Advertising
 
10,200
 
 
 
 
 
 
 
 
1,700
 
 
10,200
 
 
 
 
 
 
 
 
 
 
 
8,500
 
 
 
 
 
Equipment
 
42,500
 
 
 
 
 
 
 
 
 
 
 
42,500
 
 
 
 
 
 
 
 
 
 
 
42,500
 
 
 
 
 
Accumulated Depreciation—Equipment
 
 
 
 
 
 
 
 
 
 
850
 
 
 
 
 
850
 
 
 
 
 
 
 
 
 
 
 
850
 
 
Accounts Payable
 
 
 
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
 
 
 
 
 
 
 
 
 
6,500
 
 
Selena Cantu, Capital
 
 
 
 
54,500
 
 
 
 
 
 
 
 
 
 
 
54,500
 
 
 
 
 
 
 
 
 
 
 
54,500
 
 
Selena Cantu, Drawing
 
4,100
 
 
 
 
 
 
 
 
 
 
 
4,100
 
 
 
 
 
 
 
 
 
 
 
4,100
 
 
 
 
 
Fees Income
 
 
 
 
57,750
 
 
 
 
 
 
 
 
 
 
 
57,750
 
 
 
 
 
57,750
 
 
 
 
 
 
 
 
Supplies Expense
 
 
 
 
 
 
 
3,500
 
 
 
 
 
3,500
 
 
 
 
 
3,500
 
 
 
 
 
 
 
 
 
 
 
Advertising Expense
 
 
 
 
 
 
 
1,700
 
 
 
 
 
1,700
 
 
 
 
 
1,700
 
 
 
 
 
 
 
 
 
 
 
Depreciation Expense-Equipment
 
 
 
 
 
 
 
850
 
 
 
 
 
850
 
 
 
 
 
850
 
 
 
 
 
 
 
 
 
 
 
Salaries Expense
 
8,900
 
 
 
 
 
 
 
 
 
 
 
8,900
 
 
 
 
 
8,900
 
 
 
 
 
 
 
 
 
 
 
Utilities Expense
 
1,400
 
 
 
 
 
 
 
 
 
 
 
1,400
 
 
 
 
 
1,400
 
 
 
 
 
 
 
 
 
 
 
Totals
 
118,750
 
 
118,750
 
 
6,050
 
 
6,050
 
 
119,600
 
 
119,600
 
 
16,350
 
 
57,750
 
 
103,250
 
 
61,850
 
 
Net Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,400
 
 
 
 
 
 
 
 
41,400
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57,750
 
 
57,750
 
 
103,250
 
 
103,250
 
 
 
 

Required:

 

 

 

Prepare an income statement.
 

 

Prepare a statement of owner’s equity. The owner made no additional investments during the month.
 

 

Prepare a balance sheet.
 

 

Analyze:

If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted?

 

 

6
 

The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below.

Appropriate adjustments have been made for the following items:

 

 

 

Supplies used during the month, $2,900.
 

 

Expired rent for the month, $3,500.
 

 

Depreciation expense for the month, $950.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIVERSITY BOOK STORE 

Adjusted Trial Balance

November 30, 2019
Account Name
 
Debit
 
 
Credit
 
Cash
$
23,075
 
 
 
 
Accounts Receivable
 
3,812
 
 
 
 
Supplies
 
4,600
 
 
 
 
Prepaid Rent
 
21,000
 
 
 
 
Equipment
 
27,500
 
 
 
 
Accumulated Depreciation-Equipment
 
 
 
$
950
 
Accounts Payable
 
 
 
 
9,000
 
Ruby Darbandi, Capital
 
 
 
 
41,837
 
Ruby Darbandi, Drawing
 
4,000
 
 
 
 
Fees Income
 
 
 
 
48,550
 
Depreciation Expense-Equipment
 
950
 
 
 
 
Rent Expense
 
3,500
 
 
 
 
Salaries Expense
 
8,500
 
 
 
 
Supplies Expense
 
2,900
 
 
 
 
Utilities Expense
 
500
 
 
 
 
Totals
$
100,337
 
$
100,337
 
 
 

Required:

 

 

 

Record the adjusting entries in the Adjustments columns.
 

 

Complete the Trial Balance columns of the worksheet prior to making the adjusting entries.
 

 

Analyze:

What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

 

 
 

 

 
 

 

ACC 290 Week 4 Apply: Connect Assignment
 

Complete the Week 4 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

 

1
 

Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below.

End-of-the-month adjustments must account for the following items:

 

 

 

Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,500.
 

 

The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.
 

 

Rent of $2,000 expired during the month.
 

 

Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value.
 

 

Required:

 

 

 

Complete the worksheet for the month.
 

 

Prepare an income statement, statement of owner’s equity, and balance sheet. No additional investments were made by the owner during the month.
 

 

Journalize and post the adjusting entries.
 

 

Analyze

If the adjusting entries had not been made for the month, would net income be overstated or understated?

 

2
 

The trial balance of Neal Company as of January 31, 2019, after the company completed the first month of operations, is shown in the partial worksheet below.

Required:

 

 

 

Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $7,000; expired insurance, $6,900; depreciation expense for the period, $3,000.
 

 

 

Analyze:

How does the insurance adjustment affect Prepaid Insurance?

 

 
 

 

 
 

 

ACC 290 Week 5 Practice: Connect Practice Assignment
 

Complete the Week 5 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments.

 

attempt 1
 

 

1
 

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE AND EXPENSE ACCOUNTS
 
 
 
 
401
Fees Income
$
200,000
Cr.
 
511
Depr. Expense—Office Equipment
 
9,160
Dr.
 
514
Rent Expense
 
26,000
Dr.
 
517
Salaries Expense
 
99,000
Dr.
 
520
Supplies Expense
 
4,680
Dr.
 
523
Telephone Expense
 
2,700
Dr.
 
526
Travel Expense
 
20,780
Dr.
 
529
Utilities Expense
 
2,500
Dr.
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DRAWING ACCOUNT
 
 
 
302
Gloria Johnson, Drawing
22,000
Dr.
 
 
 
 
 
 
 
 

Required:

 

 

 

Record the adjusting entries in the general journal (transactions 1-3).
 

 

Record the closing entries in the general journal (transactions 4-7).
 

 

 

 

2
 

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

 

 

 

Complete the worksheet.
 

 

Record the adjusting entries in the general journal (transactions 1-3).
 

 

Record the closing entries in the general journal (transactions 4-7).
 

 

Post the adjusting entries and the closing entries to the general ledger accounts. Hint:  Be sure to enter beginning balances.
 

 

Prepare a post-closing trial balance.
 

 

Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?

 

 

3
 

On December 31, 2019, the ledger of Lopez Company contained the following account balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
Cash
$
66,000
Maria Lopez, Drawing
$
52,000
Accounts Receivable
 
5,800
Fees Income
 
107,500
Supplies
 
4,200
Depreciation Expense
 
5,500
Equipment
 
52,000
Salaries Expense
 
34,000
Accumulated Depreciation
 
5,000
Supplies Expense
 
6,000
Accounts Payable
 
6,000
Telephone Expense
 
5,200
Maria Lopez, Capital
 
121,500
Utilities Expense
 
9,300
 
 

 

 

4
 

The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCOUNT NO.
ACCOUNT
BALANCE
101
Cash
$
40,000
111
Accounts Receivable
 
29,910
121
Supplies
 
5,300
131
Prepaid Insurance
 
12,500
141
Equipment
 
59,000
142
Accumulated Depreciation—Equipment
 
20,660
202
Accounts Payable
 
7,000
301
Aretha Hinkle, Capital
 
65,000
302
Aretha Hinkle, Drawing
 
6,500
401
Fees Income
 
187,230
510
Depreciation Expense—Equipment
 
10,580
511
Insurance Expense
 
5,700
514
Rent Expense
 
16,500
517
Salaries Expense
 
83,000
518
Supplies Expense
 
2,800
519
Telephone Expense
 
3,400
523
Utilities Expense
 
4,700
 
 

All accounts have normal balances.

Required:

 

 

 

Prepare the closing entries.
 

 

Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.
 

 

 

 

5
 

The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Summary
Account No. 399
 
Balance
Date
Description
Debit
Credit
Debit
Credit
2019
 
 
 
 
 
Dec. 31
Closing
 
134,000
 
134,000
31
Closing
71,800
 
 
62,200
31
Closing
62,200
 
 
0
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linda Carter, Capital
Account No. 301
 
Balance
Date
Description
Debit
Credit
Debit
Credit
2019
 
 
 
 
 
Dec.  1
 
 
240,000
 
240,000
31
Closing
 
62,200
 
302,200
31
Closing
22,000
 
 
280,200
 
 

6

On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.

Required:

 

 

 

Record the journal entries necessary to complete closing the accounts.
 

 

What is the new balance of Madison Wells, Capital?
 

 

 

 

attempt 2

 

1
 

The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCOUNT NO.
ACCOUNT
BALANCE
101
Cash
$
40,000
111
Accounts Receivable
 
29,910
121
Supplies
 
5,300
131
Prepaid Insurance
 
12,500
141
Equipment
 
59,000
142
Accumulated Depreciation—Equipment
 
20,660
202
Accounts Payable
 
7,000
301
Aretha Hinkle, Capital
 
65,000
302
Aretha Hinkle, Drawing
 
6,500
401
Fees Income
 
187,230
510
Depreciation Expense—Equipment
 
10,580
511
Insurance Expense
 
5,700
514
Rent Expense
 
16,500
517
Salaries Expense
 
83,000
518
Supplies Expense
 
2,800
519
Telephone Expense
 
3,400
523
Utilities Expense
 
4,700
 
 

All accounts have normal balances.

Required:

 

 

 

Prepare the closing entries.
 

 

 

 

 

Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.
 

 

 

 

2
 

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

 

 

 

Complete the worksheet.
 

 

Record the adjusting entries in the general journal (transactions 1-3).
 

 

Record the closing entries in the general journal (transactions 4-7).
 

 

Post the adjusting entries and the closing entries to the general ledger accounts. Hint:  Be sure to enter beginning balances.
 

 

Prepare a post-closing trial balance.
 

 

Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?

 

 

3
 

The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Summary
Account No. 399
 
Balance
Date
Description
Debit
Credit
Debit
Credit
2019
 
 
 
 
 
Dec. 31
Closing
 
134,000
 
134,000
31
Closing
71,800
 
 
62,200
31
Closing
62,200
 
 
0
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linda Carter, Capital
Account No. 301
 
Balance
Date
Description
Debit
Credit
Debit
Credit
2019
 
 
 
 
 
Dec.  1
 
 
240,000
 
240,000
31
Closing
 
62,200
 
302,200
31
Closing
22,000
 
 
280,200
 
 

4

On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.

Required:

 

 

 

Record the journal entries necessary to complete closing the accounts.
 

 

What is the new balance of Madison Wells, Capital?
 

 

 

 

5
 

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE AND EXPENSE ACCOUNTS
 
 
 
 
401
Fees Income
$
200,000
Cr.
 
511
Depr. Expense—Office Equipment
 
9,160
Dr.
 
514
Rent Expense
 
26,000
Dr.
 
517
Salaries Expense
 
99,000
Dr.
 
520
Supplies Expense
 
4,680
Dr.
 
523
Telephone Expense
 
2,700
Dr.
 
526
Travel Expense
 
20,780
Dr.
 
529
Utilities Expense
 
2,500
Dr.
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DRAWING ACCOUNT
 
 
 
302
Gloria Johnson, Drawing
22,000
Dr.
 
 
 
 
 
 
 
 

Required:

 

 

 

Record the adjusting entries in the general journal (transactions 1-3).
 

 

Record the closing entries in the general journal (transactions 4-7).
 

 

 

 
 

 

6
 

On December 31, 2019, the ledger of Lopez Company contained the following account balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
Cash
$
66,000
Maria Lopez, Drawing
$
52,000
Accounts Receivable
 
5,800
Fees Income
 
107,500
Supplies
 
4,200
Depreciation Expense
 
5,500
Equipment
 
52,000
Salaries Expense
 
34,000
Accumulated Depreciation
 
5,000
Supplies Expense
 
6,000
Accounts Payable
 
6,000
Telephone Expense
 
5,200
Maria Lopez, Capital
 
121,500
Utilities Expense
 
9,300
 
 

 

 
 

 

 
 

 

ACC 290 Week 5 Apply: Connect Assignment
 

Complete the Week 5 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

 

1
 

On December 31, after adjustments, Gonzalez Company’s ledger contains the following account balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
101
Cash
$
30,200
Dr.
 
111
Accounts Receivable
 
16,100
Dr.
 
121
Supplies
 
2,300
Dr.
 
131
Prepaid Rent
 
38,900
Dr.
 
141
Equipment
 
47,000
Dr.
 
142
Accumulated Depreciation—Equip.
 
1,150
Cr.
 
202
Accounts Payable
 
6,800
Cr.
 
301
Emilio Gonzalez, Capital (12/1/2019)
 
48,620
Cr.
 
302
Emilio Gonzalez, Drawing
 
6,500
Dr.
 
401
Fees Income
 
120,080
Cr.
 
511
Advertising Expense
 
4,100
Dr.
 
514
Depreciation Expense—Equip.
 
830
Dr.
 
517
Rent Expense
 
2,900
Dr.
 
519
Salaries Expense
 
21,800
Dr.
 
523
Utilities Expense
 
6,020
Dr.
 
 
 

Required:

 

 

 

Journalize the closing entries in the general journal.
 

 

Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.
 

 

Analyze:

What is the balance of the Salaries Expense account after closing entries are posted?

 

2
 

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

 

 

 

Complete the worksheet.
 

 

Record the adjusting entries in the general journal (transactions 1-3).
 

 

Record the closing entries in the general journal (transactions 4-7).
 

 

Post the adjusting entries and the closing entries to the general ledger accounts. Hint:  Be sure to enter beginning balances.
 

 

Prepare a post-closing trial balance.
 

 

Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?
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