ACC
290 chapter 3 Appendix A E3-4 E3-9 P3-5A P3-6A
E3-4 A
tabular analysis of the transactions made during August 2012 by Nigel Company
during its first month of operations is shown below. Each increase and decrease
instockholders’ equity is explained.
Assets _
Liabilities _ Stockholders’ Equity
Accounts
Common Retained Earnings
Cash+
A/R + Supp+Equip-Payable+Stock+Rev.-Exp.-Div.
1.
+$20,000 _$20,000 Com. Stock
2.
-1,000 _$5,000 _$4,000
3.
-750 _$750
4.
+4,100 _$5,400 _$9,500 Serv. Rev.
5.
-1,500 _1,500
6.
-2,000 _$2,000 Div.
7.
-800 _$ 800 Rent Exp.
8.
+450 _450
9.
-3,000 _3,000 Sal. Exp.
10.
+300 _300 Util. Exp
Instructions
(a)
Describe each transaction.
(b)
Determine how much stockholders’ equity increased for the month.
(c)
Compute the net income for the month.
E3-9 The
May transactions of StepAside Corporation were as follows.
May
4 Paid
$700 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,800.
8 Purchased supplies for $850 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $530 in cash.
22 Received bill for equipment repairs of $900.
29 Paid $1,200 for 12 months of insurance policy. Coverage begins
June 1.
Instructions
Journalize
the transactions. Do not provide explanations.
P3-5A Towne
Architects incorporated as licensed architects on April 1, 2012. During the
first month of the operation of the business, these events and transactions
occurred:
Apr.
1 Stockholders
invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week,
payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Spring
Green Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for
services.
11 Received $700 cash advance from J. Madison to design a new home.
20 Received $2,800 cash for services completed and delivered to M.
Svetlana.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Spring Green Company for accounts payable due.
The
company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts
Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and
Wages Expense, and Rent Expense.
Instructions
(a)
Journalize the transactions, including explanations.
(b)
Post to the ledger T accounts.
(c)
Prepare a trial balance on April 30, 2012.
P3-6A This
is the trial balance of Mimosa Company on September 30.
MIMOSA COMPANY
Trial Balance
September 30, 2012
|
|
Debit
|
Credit
|
|
Cash
|
$ 8,200
|
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Accounts Receivable
|
2,600
|
|
|
Supplies
|
2,100
|
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Equipment
|
8,000
|
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Accounts Payable
|
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$ 4,800
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Unearned Service Revenue
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1,100
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Common Stock
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15,000
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$20,900
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$20,900
|
The
October transactions were as follows.
Oct.
5 Received
$1,300 in cash from customers for accounts receivable due.
10 Billed customers for services performed $5,100.
15 Paid employee salaries $1,200.
17 Performed $600 of services for customers who paid in advance in
August.
20 Paid $1,900 to creditors for accounts payable due.
29 Paid a $300 cash dividend.
31 Paid utilities $400.
Instructions
(a)
Prepare a general ledger using T accounts. Enter the opening balances in the
ledger accounts as of October 1. Provision should be made for these additional
accounts: Dividends, Service Revenue, Salaries and Wages Expense, and Utilities
Expense.
(b)
Journalize the transactions, including explanations.
(c)
Post to the ledger accounts.
(d)
Prepare a trial balance on October 31, 2012.
Journalize transactions, post, and prepare a trial
balance.
(SO
3, 5, 6, 7, 8), AP (c) Cash $18,800
Tot.
trial balance $24,400 Journalize transactions, post, and prepare a trial
balance. (SO 3, 5, 6, 7, 8), AP (d) Cash $ 5,700 Tot. trial balance
$24,100
TUTORIAL PREVIEW[Excel Sheet]
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A)
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GENERAL
JOURNAL
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DATE
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ACCOUNT
TITLE AND EXPLANATION
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DEBIT
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CREDIT
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Apr. 1
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Cash
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18,000
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Common Stock
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18,000
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(Issued
shares of stock for cash)
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1
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No entry
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2
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Rent
expense
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900
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Cash
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900
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File name: ACC-290-Appendix-A.xls File
type: XLS Price: $30
