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Category > Accounting Posted 19 Apr 2017 My Price 18.00

ACC 201 Chapter 1 Problem set A

ACC 201 Chapter 1 Problem set A

Problem 1-1A

Kinney’s Repair Inc. was started on May 1. A summary of May transactions is presented below.

1.		Stockholders invested $10,000 cash in the business in exchange for common stock.
2.		Purchased equipment for $5,000 cash.
3.		Paid $400 cash for May office rent.
4.		Paid $500 cash for supplies.
5.		Incurred $250 of advertising costs in the Beacon News on account.
6.		Received $4,700 in cash from customers for repair service.
7.		Declared and paid a $1,000 cash dividend.
8.		Paid part-time employee salaries $1,000.
9.		Paid utility bills $140.
10.		Provided repair service on account to customers $980.
11.		Collected cash of $120 for services billed in transaction (10).

Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

Problem 1-2A

On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred.

1.		Paid $2,900 cash for accounts payable due.
2.		Collected $1,300 of accounts receivable.
3.		Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4.		Earned revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.
5.		Declared and paid a $400 cash dividend
6.		Paid salaries $1,700, rent for September $900, and advertising expense $200.
7.		Incurred utilities expense for month on account $170.
8.		Received $10,000 from Capital Bank on a 6-month note payable.

Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

Problem 1-3A

On May 1, Blue Sky Flying School, a company that provides flying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2014, and the revenues and expenses for the month of May.

Cash	$ 4,500	Notes Payable	$28,000
Accounts Receivable	7,200	Rent Expense	1,200
Equipment	64,000	Maintenance and Repairs Expense	400
Service Revenue	6,800	Gasoline Expense	2,500
Advertising Expense	500	Utilities Expense	400
Accounts Payable	1,400

No additional investments were made in May, but the company paid dividends of $500 during the month.

Prepare an income statement for the month of May.

Problem 1-4A

Matt Stiner started a delivery service, Stiner Deliveries, on June 1, 2014. The following transactions occurred during the month of June.

June 1		Stockholders invested $10,000 cash in the business in exchange for common stock.
2		Purchased a used van for deliveries for $14,000. Matt paid $2,000 cash and signed a note payable for the remaining balance.
3		Paid $500 for office rent for the month.
5		Performed $4,800 of services on account.
9		Declared and paid $300 in cash dividends.
12		Purchased supplies for $150 on account.
15		Received a cash payment of $1,250 for services provided on June 5.
17		Purchased gasoline for $100 on account.
20		Received a cash payment of $1,500 for services provided.
23		Made a cash payment of $500 on the note payable.
26		Paid $250 for utilities.
29		Paid for the gasoline purchased on account on June 17.
30		Paid $1,000 for employee salaries.

Show the effects of the previous transactions on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

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Status NEW Posted 19 Apr 2017 08:04 AM My Price 18.00

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