ACC290 Principles of Accounting I

University of Phoenix

Question 1

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

TRANSACTIONS

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

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

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

+74,500

− 8,700

+8,700

+5,700

+4,180

−3,750

+ 720

−720

−2,900

−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.

ACC290 Week 2 Apply Exercise SCORE 100 PERCENT

Question 1

On a statement of owner's equity, beginning capital is $45,000, Net Income for the year is $18,500 and Drawing for the year is $7,500, the ending capital amount would be:

Multiple Choice

$45,000

$71,000

$56,000

$34,000

Question 2

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

Derrick invested $77,000 cash in the business.
Paid $17,000 in cash for equipment.
Performed services for cash amounting to $7,700.
Paid $2,500 in cash for advertising expense.
Paid $1,700 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.

Requirement 1

Select which two accounts are affected in each of the above transactions

Req 2 and 3

Post the above transactions into the appropriate T accounts.

Question 3

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

Cash
(a)	182,000	(b)	38,000
(d)	22,000	(e)	620
(g)	2,200	(h)	10,200
		(i)	4,200
Equipment
(c)	72,000

Accounts Receivable
(f)	8,400	(g)	2,200



Accounts Payable
		(c)	72,000

Supplies
(b)	38,000



Wade Wilson, Capital
		(a)	182,000

Fees Income
		(d)	22,000
		(f)	8,400


Telephone Expense
(e)	620

Wade Wilson, Drawing
(i)	4,200



Salaries Expense
(h)	10,200

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.

Question 4

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.

Question 5

The total of the figures on the left side of a Cash account is $35,800. The total of the figures on the right side is $16,100. The balance of this account:

Multiple Choice

is $19,700 and would be recorded on the right side of the account.

is $51,900 and would be recorded on the left side of the account.

is $19,700 and would be recorded on the left side of the account.

is $51,900 and would be recorded on the right side of the account.

Question 6

Required information

[The following information applies to the questions displayed below.]

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below.


Cash	19,650	Fees Income	-0-
Accounts Receivable	850	Rent Expense	-0-
Office Equipment	2,500	Utilities Expense	-0-
Supplies	250	Salaries Expense	-0-
Accounts Payable	1,500
Kelly Connor, Capital	21,750
Kelly Connor, Drawing	-0-

The following transactions occurred during the month of November.

Collected $350 from credit customers.
Issued a check for $760 for November's rent.
Paid $1,700 for salaries.
The owner withdrew $560 in cash for personal expenses.
Issued a check for $200 to pay the monthly utility bill.
Received $2,725 in cash for services performed.
Purchased office equipment for $1,350 on credit.

Post the above transactions into the appropriate T accounts.

Answer

Question 9

Required information

[The following information applies to the questions displayed below.]

The T account balances for the accounts of Rya's Planning Services as of January 31, 2019 are listed below.


Cash	$	22,100
Accounts Receivable		18,100
Office Supplies		850
Equipment		15,000
Accounts Payable		5,160
Rya Page, Capital		29,100
Rya Page, Drawing		6,200
Planning Fees Income		34,250
Office Supplies Expense		320
Rent Expense		920
Salaries Expense		4,200
Utilities Expense		820

Prepare a Trial Balance as of January 31, 2019.

Question 10

Required information

[The following information applies to the questions displayed below.]

The T account balances for the accounts of Rya's Planning Services as of January 31, 2019 are listed below.


Cash	$	22,100
Accounts Receivable		18,100
Office Supplies		850
Equipment		15,000
Accounts Payable		5,160
Rya Page, Capital		29,100
Rya Page, Drawing		6,200
Planning Fees Income		34,250
Office Supplies Expense		320
Rent Expense		920
Salaries Expense		4,200
Utilities Expense		820

Prepare an income statement for the Rya's Planning Services for the month ended January 31, 2019.
Prepare a statement of owner's equity for Rya's Planning Services for the month ended January 31, 2019.
Prepare a balance sheet for Rya's Planning Services as of January 31, 2019.

ACC290 Week 3 Apply Exercise SCORE 100 PERCENT

Question 1

Selected activity of Mason Consulting Services follow.

DATE		TRANSACTIONS
2019
Sept.	1	Zack Mason invested $44,000 in cash to start the firm.
	4	Purchased office equipment for $4,900 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 $12,900 in full payment.
	20	Purchased supplies for $360; paid immediately with Check 1002.
	23	Returned damaged supplies for a cash refund of $90.
	30	Issued Check 1003 for $2,600 to Den, Inc., as payment on account for Invoice 9823.
	30	Withdrew $1,400 in cash for personal expenses.
	30	Issued Check 1004 for $900 to pay the rent for September.
	30	Performed services for $3,050 in cash.
	30	Paid $355 for monthly telephone bill, Check 1005.

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

Question 2

Selected activity of Mason Consulting Services follow.

DATE		TRANSACTIONS
2019
Sept.	1	Zack Mason invested $54,000 in cash to start the firm.
	4	Purchased office equipment for $5,900 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 $13,900 in full payment.
	20	Purchased supplies for $460; paid immediately with Check 1002.
	23	Returned damaged supplies for a cash refund of $140.
	30	Issued Check 1003 for $3,400 to Den, Inc., as payment on account for Invoice 9823.
	30	Withdrew $2,400 in cash for personal expenses.
	30	Issued Check 1004 for $1,400 to pay the rent for September.
	30	Performed services for $2,450 in cash.
	30	Paid $405 for monthly telephone bill, Check 1005.

Post the above transactions into the appropriate Ledger accounts.

Question 3

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

DATE		TRANSACTIONS
Nov.	5	Performed services for Job Search, Inc., for $28,000; received $13,000 in cash and the client promised to pay the balance in 60 days.
	18	Purchased a graphing calculator for $365 and some supplies for $515 from Office Supply; issued Check 1008 for the total.
	23	Received Invoice 1602 for $1,500 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.

Question 4

On June 10, 2019, an employee of Williams Corporation mistakenly debited Telephone Expense rather than Utilities Expense when recording a bill of $985 for the May utility service. The error was discovered on June 30. Prepare a general journal entry to correct the error.

Question 5

On August 22, 2019, an employee of Bell Company mistakenly debited the Repair Expense account rather than the Truck Expense account when recording a bill of $725 for repairs. The error was discovered on October 1. Prepare a general journal entry to correct the error.

Question 6

The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice

a debit to Equipment for $210 and a credit to Accounts Payable for $620.

debit to Equipment for $830 and a credit to Cash for $830.

a debit to Equipment for $830, a credit to Cash for $210, and a credit to Accounts Payable for $620.

a debit to Equipment for $210 and a credit to Cash for $210.

Question 7

The Accounts Payable account has a $4,700 credit balance. An entry for the payment of $1,850 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

Multiple Choice

a $6,550 debit balance.

a $2,850 debit balance.

a $6,550 credit balance.

a $2,850 credit balance.

Question 8

Bertrand Inc. performed services for clients in the amount of $2,000 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice

Debit Cash $2,000; credit Accounts Receivable $2,000

Debit Accounts Receivable $2,000; credit Fees Income $2,000

Debit Fees Income $2,000; credit Cash $2,000

Debit Accounts Receivable $2,000; credit Cash $2,000

Question 9

Bertrand Inc. purchased some shop equipment for $6,100 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

Debit Cash $6,100; credit Shop Equipment $6,100

Debit Shop Equipment $6,100; credit Office Equipment $6,100

Debit Office Equipment $6,100; credit Shop Equipment $6,100

Debit Office Equipment $6,100; credit Cash $6,100

ACC290 Week 4 Apply Exercise SCORE 100 PERCENT

Question 1

On June 1, 2019, Cain Company, a new firm, paid $5,100 rent in advance for a six-month period. The $5,100 was debited to the Prepaid Rent account.
On June 1, 2019, the firm bought supplies for $7,200. The $7,200 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $2,925 were on hand.
On June 1, 2019, the firm bought equipment costing $54,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.

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

Question 2

A firm purchased a two-year insurance policy for $6,720 on July 1, 2019. The $6,720 was debited to the Prepaid Insurance account.
On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. The firm paid $15,360 in advance and debited the amount to Prepaid Advertising.

Prepare end-of-month adjusting entries for each of the above situations.

Question 3

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

ACCOUNTS
Cash	61,500
Accounts Receivable	21,000
Supplies	7,500
Prepaid Insurance	6,700
Equipment	90,000
Accum. Depr.—Equip.	0
Accounts Payable	15,200
Sadie Palmer, Capital	80,450
Fees Income	109,500
Depreciation Exp.—Equip.	0
Insurance Expense	0
Rent Expense	9,100
Salaries Expense	9,350
Supplies Expense	0

Additional information:

Supplies used during January totaled $4,950.
Expired insurance totaled $1,675.
Depreciation expense for the month was $1,450.

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.

Question 4

Assume that a firm reports net income of $89,000 prior to making adjusting entries for the following items: expired rent, $6,900; depreciation expense, $8,100; and supplies used, $3,500.

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

Question 5

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

Supplies used, $10,200 (supplies totaling $16,400 were purchased on December 1, 2019, and debited to the Supplies account).
Expired insurance, $7,400; on December 1, 2019, the firm paid $44,400 for six months' insurance coverage in advance and debited Prepaid Insurance for this amount.
Depreciation expense for equipment, $5,000.

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

Question 6

A total of $3,600 in supplies was purchased during the year. At the end of the year $860 of the supplies were left. The adjusting entry needed at the end of the year is:

Multiple Choice

debit Supplies Expense $3,600; credit Supplies $3,600

debit Supplies Expense $2,740; credit Supplies $2,740

debit Supplies Expense $860; credit Supplies $860

debit Supplies $2,740; credit Supplies Expense $2,740

Question 7

MacGyver Company bought equipment on January 3, 2019, for $34,800. At the time of purchase, the equipment was estimated to have a useful life of 4 years and a salvage value of $960. Using the straight-line method, the amount of one year's depreciation is

Multiple Choice

$960

$5,800

$470

$8,460

Question 8

Equipment costing $22,000 with an estimated salvage value of $1,600 and an estimated life of 5 years was purchased on October 31, 2019. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019?

Multiple Choice

$340

$5,100

$680

$1,600

Question 9

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $1,560. The correct adjusting entry on December 31, 2019, is:

Multiple Choice

debit Insurance Expense $520; credit Prepaid Insurance $520

debit Insurance Expense $1,170; credit Prepaid Insurance $1,170

debit Prepaid Insurance $130; credit Insurance Expense $130

debit Prepaid Insurance $1,560; credit Insurance Expense $1,560

Question 10

On October 25, 2019, the company paid $26,400 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:

Multiple Choice

an $8,800 debit to Rent Expense.

a $4,400 credit to Cash.

a $26,400 credit to Rent Expense.

a $4,400 credit to Prepaid Rent.

ACC290T Week 5 Apply Exercise SCORE 100 PERCENT

Question 1

The first two closing entries to the Income Summary account indicate a debit of $57,250 and a credit of $69,100. The third closing entry would be:

Multiple Choice

debit Capital $11,850; credit Income Summary $11,850.

debit Income Summary $11,850; credit Drawing $11,850.

debit Revenue $69,100; credit Expenses $57,250.

debit Income Summary $11,850; credit Capital $11,850.

Question 2

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


Cash	$	31,000	Maria Lopez, Drawing	$	11,500
Accounts Receivable		1,900	Fees Income		43,750
Supplies		1,100	Depreciation Expense		1,750
Equipment		24,000	Salaries Expense		15,000
Accumulated Depreciation		1,500	Supplies Expense		2,000
Accounts Payable		2,000	Telephone Expense		1,600
Maria Lopez, Capital		46,250	Utilities Expense		3,650

Prepare the closing entries for the above transactions.

Question 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		66,400		66,400
31	Closing	35,600			30,800
31	Closing	30,800			0

Linda Carter, Capital			Account No. 301
				Balance
Date	Description	Debit	Credit	Debit	Credit
2019
Dec. 1			117,000		117,000
31	Closing		30,800		147,800
31	Closing	10,700			137,100

Enter the following amounts.

Question 4

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

ACCOUNT NO.	ACCOUNT	BALANCE
101	Cash	$	61,000
111	Accounts Receivable		35,460
121	Supplies		8,700
131	Prepaid Insurance		23,100
141	Equipment		99,000
142	Accumulated Depreciation—Equipment		39,420
202	Accounts Payable		11,100
301	Aretha Hinkle, Capital		111,000
302	Aretha Hinkle, Drawing		11,100
401	Fees Income		299,800
510	Depreciation Expense—Equipment		19,260
511	Insurance Expense		9,500
514	Rent Expense		31,100
517	Salaries Expense		147,000
518	Supplies Expense		3,700
519	Telephone Expense		4,900
523	Utilities Expense		7,500

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.

Question 5

On December 31, the Income Summary account of Madison Company has a debit balance of $31,000 after revenue of $33,000 and expenses of $64,000 were closed to the account. Madison Wells, Drawing has a debit balance of $3,400 and Madison Wells, Capital has a credit balance of $52,000.

Required:

Record the journal entries necessary to complete closing the accounts.
What is the new balance of Madison Wells, Capital?

Question 6

The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows.

Account Name	Balance
Cash		7,700
Accounts Receivable		2,250
Supplies		2,100
Prepaid Insurance		770
Equipment		20,500
Accumulated Depreciation–Equipment		4,400
Accounts Payable		3,450
Roger Dye, Capital		16,500
Roger Dye, Drawing		4,200
Fees Income		19,800
Supplies Expense		820
Insurance Expense		670
Depreciation Expense–Equipment		620
Salaries Expense		3,450
Utilities Expense		1,070

Prepare the Balance Sheet and Income Statement columns of the worksheet. Prepare the closing entries for RD Consulting on December 31, 2019. All accounts have normal balances and adjusting entries have been made.

Question 7

The partial worksheet for the Jamison Company showed the following data on October 31, 2019.

	INCOME STATEMENT		BALANCE SHEET
ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT
Jason Jamison, Capital				31,000
Jason Jamison, Drawing			2,000
Fees Income		21,000
Salaries Expense	10,800
Rent Expense	1,100
Supplies Expense	500
Utilities Expense	600
Depr. Exp. −Equip.	950
Totals	13,950	21,000	42,650	35,600
Net Income	7,050			7,050
	21,000	21,000	42,650	42,650

Prepare the closing entries for Jamison Company on October 31, 2019.

Question 8

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


Accounts Payable	$	12,600	Fees Income	$	177,000
Accounts Receivable		5,500	Supplies		3,900
Accumulated Depreciation		7,400	Prepaid Rent		59,500
Cash		79,000	Rent Expense		8,700
Depreciation Expense		7,400	Supplies Expense		7,900
Equipment		67,000	Teresa Davis, Capital		108,500
Teresa Davis, Drawing		51,500	Utilities Expense		15,100

All the accounts have normal balances. Prepare the closing entries for Davis Company On December 31.

· Record entry to transfer fees income to income summary.

· 2 Record entry to transfer expenses to income summary.

· 3 Record entry to transfer net income or net loss from income summary to capital.

· 4 Record entry to transfer drawings to capital account.

Question 9

Dorsey Company’s partial worksheet for the month ended March 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the March 1, 2019, balance of $40,500 shown on the worksheet.

	INCOME STATEMENT		BALANCE SHEET
ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT
Cash			10,200
Accounts Receivable			14,400
Supplies			5,350
Equipment			38,500
Accum. Depr. – Equip.				13,400
Accounts Payable				11,200
N. Dorsey, Capital				40,500
N. Dorsey, Drawing			4,700
Fees Income		29,800
Salaries Expense	15,100
Rent Expense	2,250
Supplies Expense	1,550
Depr. Exp. −Equip.	2,850
Totals	21,750	29,800	73,150	65,100
Net Income	8,050			8,050
	29,800	29,800	73,150	73,150

Prepare a journal entries for the Dorsey Company’s on March 31, 2019. Post the closing entries to the owner’s capital account. Prepare a postclosing trial balance.

Question 10

Danos Company’s partial worksheet for the month ended December 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the December 1, 2019, balance of $83,000 shown on the worksheet.

	INCOME STATEMENT		BALANCE SHEET
ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT
Cash			26,500
Accounts Receivable			25,800
Supplies			10,900
Equipment			69,000
Accum. Depr. – Equip.				23,800
Accounts Payable				20,400
D. Danos, Capital				83,000
D. Danos, Drawing			7,900
Fees Income		57,400
Salaries Expense	30,600
Rent Expense	4,700
Supplies Expense	2,350
Depr. Exp. −Equip.	6,850
Totals	44,500	57,400	140,100	127,200
Net Income	12,900			12,900
	57,400	57,400	140,100	140,100

Prepare the closing entries for the Danos Company’s on December 31, 2019. Post the closing entries to the owner’s capital account. Prepare a postclosing trial balance.

Complete Assignments of Courses of Leading Universities

ACC290 Principles of Accounting I

ACC290 Week 2 Apply Exercise SCORE 100 PERCENT

Required information

ACC290T Week 5 Apply Exercise SCORE 100 PERCENT

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