Accounting Principles I Chapter 2 Exam quide

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Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invested $80,000 cash along with office equip ... ment valued at $26,000 in the company. 2 The company prepaid $9,000 cash for twelve months’ rent for office space. (Hint:Debit Prepaid Rent for $9,000.) 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9 The company completed a $6,000 project for a client, who must pay within 30 days. 13 The company paid $11,600 cash to settle the account payable created on April 3. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. (Hint:Debit Prepaid Insurance for $2,400.) 22 The company received $4,400 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,890 on credit. 28 Tanner withdrew $5,500 cash from the company for personal use. 29 The company purchased $600 of additional office supplies on credit. 30 The company paid $435 cash for this month’s utility bill. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 3 2- i. The company completed engineering services for $22,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days. k. The company collected $7,000 cash in partial payment from the client described in transaction g. l. The company paid $1,200 cash for wages to a drafting assistant. m. The company paid $1,150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for minor maintenance of its drafting equipment. o. Jenna Aracel withdrew $9,480 cash from the company for personal use. p. The company paid $1,200 cash for wages to a drafting assistant. q. The company paid $2,500 cash for advertisements on the Web during June. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); J. Aracel, Capital (301); J. Aracel, Withdrawals (302); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of June. 3- Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March. March 1 Brooks invested $150,000 cash along with $22,000 in office equipment in the company. 2 The company prepaid $6,000 cash for six months’ rent for an office. (Hint:Debit Prepaid Rent for $6,000.) 3 The company made credit purchases of office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9 The company completed a $7,500 project for a client, who must pay within 30 days. 12 The company paid $4,200 cash to settle the account payable created on March 3. 19 The company paid $5,000 cash for the premium on a 12-month insurance policy. (Hint:Debit Prepaid Insurance for $5,000.) 22 The company received $3,500 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $3,820 on credit. 29 Brooks withdrew $5,100 cash from the company for personal use. 30 The company purchased $600 of additional office supplies on credit. 31 The company paid $500 cash for this month’s utility bill. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); D. Brooks, Capital (301); D. Brooks, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of March. 4- Business transactions completed by Hannah Venedict during the month of September are as follows. a. Venedict invested $60,000 cash along with office equipment valued at $25,000 in a new sole proprietorship named HV Consulting. b. The company purchased land valued at $40,000 and a building valued at $160,000. The purchase is paid with $30,000 cash and a long-term note payable for $170,000. c. The company purchased $2,000 of office supplies on credit. d. Venedict invested her personal automobile in the company. The automobile has a value of $16,500 and is to be used exclusively in the business. e. The company purchased $5,600 of additional office equipment on credit. f. The company paid $1,800 cash salary to an assistant. g. The company provided services to a client and collected $8,000 cash. h. The company paid $635 cash for this month’s utilities. i. The company paid $2,000 cash to settle the account payable created in transaction c. j. The company purchased $20,300 of new office equipment by paying $20,300 cash. k. The company completed $6,250 of services for a client, who must pay within 30 days. l. The company paid $1,800 cash salary to an assistant. m. The company received $4,000 cash in partial payment on the receivable created in transaction k. n. Venedict withdrew $2,800 cash from the company for personal use. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); H. Venedict, Capital (301); H. Venedict, Withdrawals (302); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of September 5- On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2017. The company’s initial chart of accounts follows. Account No. Account No. Cash 101 S. Rey, Capital 301 Accounts Receivable 106 S. Rey, Withdrawals 302 Computer Supplies 126 Computer Services Revenue 403 Prepaid Insurance 128 Wages Expense 623 Prepaid Rent 131 Advertising Expense 655 Office Equipment 163 Mileage Expense 676 Computer Equipment 167 Miscellaneous Expenses 677 Accounts Payable 201 Repairs Expense—Computer 684 Oct. 1 S. Rey invested $50,000 cash, a $24,000 computer system, and $9,000 of office equipment in the company. 2 The company paid $3,280 cash for four months' rent. (Hint: Debit Prepaid Rent for $3,280.) 3 The company purchased $1,360 of computer supplies on credit from Harris Office Products. 5 The company paid $1,680 cash for one year's premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $1,680.) 6 The company billed Easy Leasing $5,600 for services performed in installing a new Web server. 8 The company paid $1,360 cash for the computer supplies purchased from Harris Office Products on October 3. 10 The company hired Lyn Addie as a part-time assistant for $115 per day, as needed. 12 The company billed Easy Leasing another $1,900 for services performed. 15 The company received $5,600 cash from Easy Leasing as partial payment on its account. 17 The company paid $760 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,693 cash for advertisements published in the local newspaper. 22 The company received $1,900 cash from Easy Leasing on its account. 28 The company billed IFM Company $5,608 for services performed. 31 The company paid $805 cash for Lyn Addie’s wages for seven days' work. Nov . 31 S. Rey withdrew $2,900 cash from the company for personal use. 1 The company reimbursed S. Rey in cash for business automobile mileage allowance (Rey logged 1,000 miles at $0.29 per mile). 2 The company received $4,833 cash from Liu Corporation for computer services performed. 5 The company purchased computer supplies for $1,115 cash from Harris Office Products. 8 The company billed Gomez Co. $5,868 for services performed. 13 The company received notification from Alex’s Engineering Co. that Business Solutions’s bid of $4,450 for an upcoming project was accepted. 18 The company received $3,108 cash from IFM Company as partial payment of the October 28 bill. 22 The company donated $190 cash to the United Way in the company's name. 24 The company completed work for Alex’s Engineering Co. and sent Alex’s a bill for $4,450. 25 The company sent another bill to IFM Company for the past-due amount of $2,500. 28 The company reimbursed S. Rey in cash for business automobile mileage (1,200 miles at $0.29 per mile). 30 The company paid $1,610 cash for Lyn Addie's wages for 14 days' work. 30 S. Rey withdrew $1,000 cash from the company for personal use. Required: 1. Prepare journal entries to record each of the above transactions for Business Solutions. 2. Prepare ledger accounts (in balance column format) and post the journal entries from requirement 1 to them. 3. Prepare a trial balance as of the end of November. [Show More]

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