ACC290 Week 1 Apply

Question 1

The Copy Center had the transactions listed below during the month of June.  

TRANSACTIONS
 

1. John Amos started the business with a cash investment of $44,000.
2. Purchased equipment for $14,000 on credit.
3. Performed services for $3,700 in cash.
4. Purchased additional equipment for $3,000 in cash.
5. Performed services for $4,250 on credit.
6. Paid salaries of $3,650 to employees.
7. Received $1,600 cash from charge account customers.
8. Paid $6,600 to a creditor on account.

  
Show how each transaction would be recorded in the accounting equation. (Enter decreases to account balances with a minus sign.)

 

Question 2

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

Asset	Liability	Owner's equity
26000	4660
22400	4280
49875		9950
	3500	31875
55800		24675

Question 3

Guy McKinley started the McKinley Charter Service at the beginning of August 2019. On August 31, 2019, the accounting records of the business showed the following information.
 

Equipment	$	20,400			Rent Expense	$	6,800
Accounts Receivable		1,700			Cash		7,900
Fees Income		38,000			Salaries Expense		12,700
Boats		98,500			Utilities Expense		1,450
Gasoline Expense		9,500			Supplies		5,500
Loans Payable		79,000			Initial Investment		46,500
Owners' Withdrawal		5,300			Accounts Payable		6,250

Prepare an income statement and a statement of owner's equity for the month and a balance sheet as of August 31, 2019.

Complete this question by entering your answers in the tabs below.

Prepare an income statement for the month of August 31, 2019.

 

Prepare a statement of owner's equity for the month of August 31, 2019.

Prepare a balance sheet for August 31, 2019.

 

Question 4

Tax accounting involves tax compliance and

 

Multiple Choice

    tax evaluation.

    tax planning.

    tax configuration.

    tax obfuscation.

 

Question 5

Required Information

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,210; Prepaid Insurance, $510; Equipment, $36,300 and Cash, $40,700. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,100; Allen Office Equipment, $9,550.

 

The total assets for the SloMo Delivery Service are:

Multiple Choice

    $78,720

    $41,910

    $42,420

    $77,000

 

Question 6

Required information

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,210; Prepaid Insurance, $510; Equipment, $36,300 and Cash, $40,700. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,100; Allen Office Equipment, $9,550.

 

The total amount of Liabilities is:

Multiple Choice

    $40,700

    $9,550

    $21,650

    $36,300

 

Question 7

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
 

Cash		Accounts Payable
Accounts Receivable		Shawn Dahl, Capital
Office Equipment		Revenue
Canoe and Kayak Equipment		Expenses

Transactions

1. Shawn Dahl invested $50,000 in cash to open the business
2. Paid $14,200 in cash for the purchase of kayak and canoe equipment
3. Paid $2,200 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $4,900 on credit
5. Received $4,600 in cash for kayak rentals
6. Rented canoes and kayaks for $3,400 on account
7. Purchased office equipment for $375 in cash
8. Received $1,350 in cash from credit clients
9. Shawn Dahl withdrew $1,800 in cash for personal expenses

Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

Balance of account receivables: ?

 

Question 8

Based on the information above, complete the following accounting equation.

 

Question 9

The table below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $74,500 (Transaction 1).

 

Assets

=

Liab.

+

Owner's Equity

Transaction

Cash

Accts. Rec.

Supp.

Equip.

Accts. Pay.

G. Sawyer, Capital

Rev.

Exp.

1

+74,500

+74,500

2

− 8,700

+8,700

3

+5,700

+5,700

4

+4,180

+4,180

5

−3,750

−3,750

6

+ 720

−720

7

−2,900

−2,900

8

−500

+500

Bal

59,370

+

4,980

+

500

+

12,880

=

4,180

+

71,600

+

5,700

−

3,750

 

What was the net income or net loss for Sawyer Architecture Services for the month of June?

 

 

Question 10

Prepare the statement of owner's equity for Sawyer Architecture Services for the month ended June 30, 2019.