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ACC 290 Week 2: E3-4, E3-9, P3-5A, P3-6A

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Description

Type: Instant Download

Format: Microsoft Excel

Textbook: Financial Accounting Tools for Business Decision Making, Sixth Edition

E3-4. ACC290 Week 2 Assignment.

A tabular analysis of the transactions made during August 2012 by Nigel Company during its first month of operations is shown below. Each increase and decrease in stockholders’ equity is explained.

Instructions
(a) Describe each transaction.
(b) Determine how much stockholders’ equity increased for the month.
(c) Compute the net income for the month.

E3-9.

The May transactions of StepAside Corporation were as follows.

May 4 Paid $700 due for supplies previously purchased on account.

7 Performed advisory services on account for $6,800.

8 Purchased supplies for $850 on account.

9 Purchased equipment for $1,000 in cash.

17 Paid employees $530 in cash.

22 Received bill for equipment repairs of $900.

29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1.
 

P3-5A.

Towne Architects incorporated as licensed architects on April 1, 2012. During the first month of the operation of the business, these events and transactions occurred:

Apr. 1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.

1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.

2 Paid office rent for the month $900.

3 Purchased architectural supplies on account from Spring Green Company $1,300.

10 Completed blueprints on a carport and billed client $1,900 for services.

11 Received $700 cash advance from J. Madison to design a new home.

20 Received $2,800 cash for services completed and delivered to M. Svetlana.

30 Paid secretary-receptionist for the month $1,500.

30 Paid $300 to Spring Green Company for accounts payable due.

The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.

P3-6A.

This is the trial balance of Mimosa Company on September 30.

MIMOSA COMPANYTrial BalanceSeptember 30, 2012

Debit Credit
Cash $ 8,200
Accounts Receivable 2,600
Supplies 2,100
Equipment 8,000
Accounts Payable
$ 4,800
Unearned Service Revenue
1,100
Common Stock
15,000

$20,900 $20,900

The October transactions were as follows.

Oct. 5 Received $1,300 in cash from customers for accounts receivable due.

10 Billed customers for services performed $5,100.

15 Paid employee salaries $1,200.

17 Performed $600 of services for customers who paid in advance in August.

20 Paid $1,900 to creditors for accounts payable due.

29 Paid a $300 cash dividend.

31 Paid utilities $400.

Journalize transactions, post, and prepare a trial balance.

  1. Prepare a general ledger using T accounts. Enter the opening balances in the ledger accounts as of October 1. Provision should be made for these additional accounts: Dividends, Service Revenue, Salaries and Wages Expense, and Utilities Expense.
  2. Journalize the transactions, including explanations.
  3. Post to the ledger accounts.
  4. Prepare a trial balance on October 31, 2012.
  
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