ACC 205 Week 1 Assignment

ACC 205 Week 1 Assignment

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MyAccountingLab Chapters 1 and 2 [WLOs: 1, 2, 3, 4] [CLOs: 1, 2]. Due by Day 7. Prior to beginning work on the exercises in MyAccountingLab this week, read Chapters 1 and 2 in the textbook. You may want to review the MyLab resources to reinforce any areas you are unclear on (optional). There are practice exercises in MyLab (not required) that can be done beforehand to prepare you for the exercises.

Short Exercises:

Chapter 1: 6, 7, 8, 12, 13, 14

Chapter 2: 2, 4, 5, 6, 7, 8

Exercises:

Chapter 1: 29, 31, 32, 33

Chapter 2: 10, 16, 17, 27

Chapter 1

SE 1-6

Thompson Handyman Services has total assets for the year of \$18,400 and total liabilities of \$9,050.

Requirements

1. Use the accounting equation to solve for equity.

2. If next year assets increased by \$4,300 and equity decreased by \$3,850, what would be the amount of total liabilities for Thompson Handyman Services?

SE 1-7

Requirements

1. Use the accounting equation to solve for the missing information.

2. Did Roland’s Overhead Doors report net income or net loss?

SE 1-8

S1-8 Identifying accounts

Learning Objective 3

Consider the following accounts:

a. Accounts Payable

b. Cash

c. Common Stock

d. Accounts Receivable

e. Rent Expense

f. Service Revenue

g. Office Supplies

h. Dividends

i. Land

j. Salaries Expense

Identify each account as Asset, Liability, or Equity.

SE 1-12

Prepare the income statement of Centerpiece Arrangements for the year ended December 31, 2018.

SE1-13

Prepare the statement of retained earnings of Centerpiece Arrangements for the year ended December 31, 2018.

SE 1-14

Prepare the balance sheet of Centerpiece Arrangements as of December 31, 2018

Using the accounting equation to analyze business transactions Ashley Stamper opened a medical practice. During July, the first month of operation, the business, titled Ashley Stamper, MD, experienced the following events:

Jul. 6 Received a contribution of \$68,000 from Stamper and opened a bank account in the name of A. Stamper, MD. The corporation issued common stock to Stamper. 9 Paid \$56,000 cash for land. 12 Purchased medical supplies for \$1,500 on account. 15 Officially opened for business. 20 Paid cash expenses: employees’ salaries, \$1,300; office rent, \$1,500; utilities, \$100. 31 Earned service revenue for the month, \$13,000, receiving cash. 31 Paid \$1,050 on account.

E-31

Requirement 1

Prepare the income statement for Wilson Towing Service for the month ending

June 30, 2018.

E-32

Requirement 1

Wilson Towing Service

Statement of Retained Earnings

Month Ended June 30, 2018

Chapter 2

SE 2-2

Identifying increases and decreases in accounts For each account, identify whether the changes would be recorded as a debit (DR) or credit (CR).

SE 2-4

Accounts   Payable

May 2

6,000

21,000

May   1

May 22

11,500

500

May   5

8,500

May   15

500

May   23

SE 2-5

John Daniel opened a medical practice in Sacramento, California, and had the following transactions during the month of January.

Journalize the transactions of John Daniel, M.D. Include an explanation with each entry.

SE 2-6

Journalizing transactions

Harper Sales Consultants completed the following transactions during the latter part of January:

Jan. 22 Performed services for customers on account, \$7,500.

30 Received cash on account from customers, \$8,000.

31 Received a utility bill, \$220, which will be paid during February.

31 Paid mnthly salary to salesman, \$2,500.

31 Received \$2,310 for three months of consulting service to be performed starting in February.

31 The owner, Damón Harper, withdrew \$950 from the business.

Journalize the transactions of Harper Sales Consultants. Include an explanation with each journal entry

SE 2-7

Journalizing transactions and posting to T-accounts Roland Foster Optical Dispensary completed the following transactions during the latter part of March:

Mar. 15 Purchased office supplies on account, \$3,400..

28 Paid \$1,800 on account.

Requirements:

1. Journalize the transactions of Roland Foster Optical Dispensary. Include an explanation with each journal entry

2. Open the following accounts (use T-account format): Cash (Beginning Balance of \$21,000), Office Supplies, and Accounts Payable. Post the journal entries from Requirement 1 to the accounts, and compute the balance in each account.

SE 2-8

Smithson Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particular order, and all have normal balances.

E2-10

Using accounting vocabulary

Match the accounting terms with the corresponding definitions:

E2-16

Identifying accounts, increases in accounts, and normal balances

a. Interest Revenue

b. Accounts Payable

c. Curtis, Capital

d. Office Supplies

f. Unearned Revenue

g. Prepaid Rent

h. Utilities Expense

i. Curtis, Withdrawals

j. Service Revenue

Requirements

1. Identify each account as asset (A), liability (L), or equity (E)

2. Identify whether the account is increased with a debit (DR) or credit (CR)

3. Identify whether the normal balance is a debit (DR) or credit (CR)

E2-27 Correcting errors in a trial balance

The following trial balance of Joy McDowell Tutoring Service as of May 31, 2018, does not balance.

Investigation of the accounting records reveals that the bookkeeper:

a. Recorded a \$400 cash revenue transaction by debiting Accounts Receivable. The credit entry was correct.

b. Posted a \$2,000 credit to Accounts Payable as \$200.

c. Did not record Utilities Expense or the related Utilities Payable in the amount of \$300.

d. Understated McDowell, Capital by \$100.

Prepare the corrected trial balance as of May 31, 2018, complete with a heading; journal entries are not required.