Record the following transactions_Brian invests $10,000 cash to begin an accounting service Answer
Part A (30 points)
Record the following transactions in the basic accounting equation:
a.Brian invests $10,000 cash to begin an accounting service.
b.The company buys office furniture for cash, $600.
c.The company buys additional office furniture on account, $300.
d.The company makes a payment on the office furniture, $200.
Brian’s Accounting Service
ASSETS = LIABILITIES + OWNER’S EQUITY
Cash + Office Furniture = Accounts Payable + Brian’s Capital
Part B (40 points)
The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial balance in good form.
Accounts Payable 770
Office Equipment 900
Benson, Capital 1,500
Benson, Withdrawals 500
Accounts Receivable 1,600
Service Fees 2,730
Salaries Expense 630
Part C (30 points)
The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a.Tyler invested $6,500 in the bike service from his personal savings account.
b.Bought office equipment for cash, $900.
c.Performed bike service for a customer on account, $1,000.
d.Company cell phone bill received, but not paid, $80.
e.Collected $500 from customer in transaction c.
f.Tyler withdrew $300 for personal use.
Part D (20 points)
Prepare in proper form journal entries for the following transactions. Omit explanations.
2 Owner made a cash investment into the company $5,000
8 Bought supplies on account $100.
10 Paid salaries, $700
15 Paid for supplies purchased on October 8
21 Received company telephone bill, to be paid later, $30
Part E (5 points each for a possible total of 50 points)
Record the following selected transactions for January in a two-column journal, identifying each entry by letter:
a.Earned $7,000 fees; customer will pay later.
b.Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
c.Paid $3,000 for rent for January.
d.Purchased $2,500 of supplies on account.
e.A. Allen $1,000 investment in the company.
f.Received $7,000 in cash for fees earned previously.
g.Paid $1,200 to creditors on account.
h.Paid wages of $6,250.
i.Received $7,150 from customers on account.
j.A. Allen withdrawal of $1,750.
1.(10 points) From the following items in the income statement columns of the worksheet of Friend’s Tutoring at December 31, prepare the closing entries without explanation, assuming that a $1,000 withdrawal was made during the period.
Account Debit Credit
Tutoring Fees 3,450
Wages Expense 700
Rent Expense 600
Supplies Expense 450
Insurance Expense 250
Net Income 1,450
2.(5 points each for a possible total of 20 points) A summary of selected ledger accounts appear below for S. Ball for the current calendar year.
Answer the following questions.
a.What was the total amount of withdrawals for the year?
b.What was the net income?
c.What was the total revenue?
d.What were the total expenses?
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