Honors Assignment

Honors Program Credit – Accounting I

Chapter 1

Hal Burton began a Web Consulting practice and completed these transactions during September of the current year:

Sept.
1
Invested $100,000 of his personal savings into a checking account opened in the name of the business.

2
Rented office space and paid $1,200 cash for the month of September.

3
Purchased office equipment for $30,000, paying $8,000 cash and agreeing to pay the balance in one year.

4
Purchased office supplies for $750 cash.

8
Completed work for a client and immediately collected $2,700 cash for the services.

15
Completed $3,600 services for a client on credit.

20
Received $3,600 from a client for the work completed on September 15.

30
Paid the office secretary's monthly salary, $3,000 cash.

30
Burton withdrew $2,000 for personal use.

Show the effects of the above transactions on the accounting equation of Halley Burton, Consultant. Use the following format for your answers. Increase = I Decrease = D No effect = N

Date
Assets
Liabilities
Equity
September 1
I
N
I
September 2
D
N
D
September 3
I
I
N
September 4
N
N
N
September 8
I
N
I
September 15
I
N
I
September 20
N
N
N
September 30
D
N
D
September 30
D
N
D

Chapter 1 & 2
Given the assets and liabilities, calculate what the balance of Perkins Capital should be (equity):

Accounts receivable…………………..
$10,000
Accounts payable…………………………..
18,000
Building……………………………………....
28,000
Cash………………………….……………....
8,000
Notes payable……………………………….
45,000
Office equipment……………...……………..
12,000
R. Perkins, Capital…………………………..
?

8000+28000+12000+10000= 58000= Assets
18000+ 45000= 63000= Liabilities

Assets (58000) – Liabilities (63000) = Equity (-5000)

Chapter 2

Vicki Lake is a computer consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Lake. Indicate the accounts debited and credited when recording each transaction by placing