Acc/280 Week 3 Accounting Report
Individual Assignment Week Two
Beauty Edgley
ACC/280 Principles of Accounting
Mr. Bobby Lon Nelson, CPA, MBA
May 20th, 2010
Individual Assignment Week Two
The answers from this exercise comes from the book Financial Accounting chapters 1,2, and 7.
E1-1
Urlacher Company performs the following accounting tasks during the year.
Answer:
__c___Analyzing and interpreting information.
____ r__Classifying economic events.
___c___Explaining uses, meaning, and limitations of data.
___r___Keeping a systematic chronological diary of events.
___r___Measuring events in dollars and cents.
____c__Preparing accounting reports.
___c_Reporting information in a standard format.
____i__Selecting economic activities relevant to the company. …show more content…
Mary has been trying to get the balance sheet of Mendez Company to balance. Mendez’s balance sheet is shown on page 37.
MENDEZ COMPANY
Balance Sheet
December 31, 2008
Assets Liabilities Cash $15,000 Accounts payable $20,000 Accounts receivable (8,500) Supplies 8,000 Equipment 46,000 Common stock 50,000 Retained earnings 7,500 57,500 Total assets $77,500 Total liabilities and stockholders’ equity $77,500
Instructions
Prepare a correct balance sheet.
E2-2 Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of business, are as follows.
Jan. 2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for …show more content…
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, stockholders’ equity).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased or decreased.
(d) The normal balance of the specific account.Use the following format, in which the January 2 transaction is given as an example.
Account Debited Account Credited
(a) (b) (c) (d) (a) (b) (c) (d)
Basic Specific Normal Basic Specific Normal
Date Type Account Effect Balance Type Account Effect Balance
Jan. 2 Asset Cash Increase Debit Stock- Common Increase Credit holders’ Stock
Equity
Acct. Debited Acct. Credit Basic Spc Effect NB Basic Spc Effect NB
Date Type Act. Type Act.
Jan 2 Asset Cash Increase Debit SHE Com.Stock Increase Credit 3 Asset Equip Increase Debit Asset Cash Decrease Debit 9 Asset Supp. Increase Debit Liability A/P Increase Credit 11 Asset A/R Increase Debit SHE Serv. Ev Increase Credit
Date Acct. Debited Acct.
Beauty Edgley
ACC/280 Principles of Accounting
Mr. Bobby Lon Nelson, CPA, MBA
May 20th, 2010
Individual Assignment Week Two
The answers from this exercise comes from the book Financial Accounting chapters 1,2, and 7.
E1-1
Urlacher Company performs the following accounting tasks during the year.
Answer:
__c___Analyzing and interpreting information.
____ r__Classifying economic events.
___c___Explaining uses, meaning, and limitations of data.
___r___Keeping a systematic chronological diary of events.
___r___Measuring events in dollars and cents.
____c__Preparing accounting reports.
___c_Reporting information in a standard format.
____i__Selecting economic activities relevant to the company. …show more content…
Mary has been trying to get the balance sheet of Mendez Company to balance. Mendez’s balance sheet is shown on page 37.
MENDEZ COMPANY
Balance Sheet
December 31, 2008
Assets Liabilities Cash $15,000 Accounts payable $20,000 Accounts receivable (8,500) Supplies 8,000 Equipment 46,000 Common stock 50,000 Retained earnings 7,500 57,500 Total assets $77,500 Total liabilities and stockholders’ equity $77,500
Instructions
Prepare a correct balance sheet.
E2-2 Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of business, are as follows.
Jan. 2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for …show more content…
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, stockholders’ equity).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased or decreased.
(d) The normal balance of the specific account.Use the following format, in which the January 2 transaction is given as an example.
Account Debited Account Credited
(a) (b) (c) (d) (a) (b) (c) (d)
Basic Specific Normal Basic Specific Normal
Date Type Account Effect Balance Type Account Effect Balance
Jan. 2 Asset Cash Increase Debit Stock- Common Increase Credit holders’ Stock
Equity
Acct. Debited Acct. Credit Basic Spc Effect NB Basic Spc Effect NB
Date Type Act. Type Act.
Jan 2 Asset Cash Increase Debit SHE Com.Stock Increase Credit 3 Asset Equip Increase Debit Asset Cash Decrease Debit 9 Asset Supp. Increase Debit Liability A/P Increase Credit 11 Asset A/R Increase Debit SHE Serv. Ev Increase Credit
Date Acct. Debited Acct.