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Online Homework System Assignment Worksheet
9/2/06 - 2:07 AM
 

Name: ____________________________ Class: BUS 120 Section 3570
Class #: ____________________________ Section #: ____________________________
Instructor: Judy Zander Assignment: Chapter 2 - Practice


Question 1: (0 points)

Prepare general journal entries for the following transactions of a new business called Pose-for-Pics. (Omit the "$" sign in your response.)

Aug. 1

Madison Harris, the owner, invested $14,250 cash and $61,275 of photography equipment in the business in exchange for its common stock.

2

Paid $3,000 cash for an insurance policy covering the next 24 months.

5

Purchased office supplies for $2,707 cash.

20

Received $2,800 cash in photography fees earned.

31

Paid $875 cash for August utilities.


Date

General Journal

Debit

Credit

Aug. 1

__________

____________

 

 

__________

____________

 

 

__________

 

____________

 

 

 

 

2

__________

____________

 

 

__________

 

____________

 

 

 

 

5

__________

____________

 

 

__________

 

____________

 

 

 

 

20

__________

____________

 

 

__________

 

____________

 

 

 

 

31

__________

____________

 

 

__________

 

____________



Question 2: (0 points)

Record the transactions below for Amena Company by recording the debit and credit entries directly in the following T-accounts (you must record the debit and credit entries in the order of the transactions): Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. Determine the ending balance of each T-account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)


a.

Ahmad Amena invested $14,500 cash in the business in exchange for its common stock.

b.

Purchased office supplies for $420 cash.

c.

Purchased $8,018 of office equipment on credit.

d.

Received $1,711 cash as fees for services provided to a customer.

e.

Paid $8,018 cash to settle the payable for the office equipment purchased in transaction c.

f.

Billed a customer $3,074 as fees for services provided.

g.

Paid the monthly rent with $525 cash.

h.

Collected $1,291 cash toward the account receivable created in transaction f.

i.

Paid $1,000 cash for dividends.


Cash

__________

____________

__________

____________

__________

____________

__________

____________

__________

____________

__________

____________

 

 

__________

____________

Balance

____________

 

 


Accounts Receivable

__________

____________

__________

____________

Balance

____________

 

 


Office Supplies

__________

____________

 

 

Balance

____________

 

 


Office Equipment

__________

____________

 

 

Balance

____________

 

 


Accounts Payable

__________

____________

__________

____________

 

 

Balance

____________


Common Stock

 

 

__________

____________

 

 

Balance

____________


Dividends

__________

____________

 

 

Balance

____________

 

 


Fees Earned

 

 

__________

____________

 

 

__________

____________

 

 

Balance

____________


Rent Expense

__________

____________

 

 

Balance

____________

 

 



Question 3: (0 points)

Given below are the transactions of Amena Company:

 

a.

Ahmad Amena invested $14,500 cash in the business in exchange for its common stock.

b.

Purchased office supplies for $420 cash.

c.

Purchased $8,018 of office equipment on credit.

d.

Received $1,711 cash as fees for services provided to a customer.

e.

Paid $8,018 cash to settle the payable for the office equipment purchased in transaction c.

f.

Billed a customer $3,074 as fees for services provided.

g.

Paid the monthly rent with $525 cash.

h.

Collected $1,291 cash toward the account receivable created in transaction f.

i.

Paid $1,000 cash for dividends.

 

Using the above information prepare the Trial Balance. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

 

AMENA COMPANY
Trial Balance
May 31, 2008

 

Debit

Credit

__________

$

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

 

$

____________

__________

 

 

 

____________

__________

 

____________

 

 

__________

 

 

 

____________

__________

 

____________

 

 

Totals

$

____________

$

____________



Question 4: (0 points)

On October 1, Ming Lue organized a new consulting firm called Tech Today. On October 31, the company's records show the following items and amounts. Use this information to prepare an October income statement for the business. (Omit the "$" sign in your response.)

 

Cash

$

9,707

 

Dividends

$

2,000

Accounts receivable

 

19,737

 

Consulting fees earned

 

19,715

Office supplies

 

3,773

 

Rent expense

 

5,278

Patents

 

53,395

 

Salaries expense

 

9,546

Office equipment

 

20,888

 

Telephone expense

 

560

Accounts payable

 

9,288

 

Miscellaneous expense

 

280

Common Stock

 

96,161

 

 

 

 


TECH TODAY
Income Statement
For Month Ended October 31

Revenues:

 

 

 

 

__________

 

 

$

____________

Expenses:

 

 

 

 

__________

$

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

Total Expenses

 

 

 

____________

__________

 

 

$

____________



Question 5: (0 points)

Use the information given below to prepare an October 31 balance sheet for OnTech. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

 

Cash

$

6,772

Dividends

$

2,000

Accounts receivable

 

13,770

Consulting fees earned

 

13,755

Office supplies

 

2,632

Rent expense

 

3,682

Patents

 

37,252

Salaries expense

 

6,660

Office equipment

 

14,574

Telephone expense

 

560

Accounts payable

 

6,480

Miscellaneous expenses

 

280

Common Stock

 

67,947

Retained earnings

 

573


OnTech
Balance Sheet
October 31

Assets

 

 

Liabilities

 

 

__________

$

____________

__________

$

____________

__________

 

____________

 

 

 

__________

 

____________

Equity

 

 

__________

 

____________

__________

 

____________

__________

 

____________

__________

 

____________

Total assets

$

____________

Total liabilities & equity

$

____________



Question 6: (0 points)

A Corporation had the following assets and liabilities at the beginning and end of a recent year:

 

Assets

Liabilities

Beginning of the year

$

147,000

 

$

63,018

 

End of the year

201,500

 

81,607

 


Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases. (Net Loss amount should be indicated by a minus sign. Omit the "$" sign in your response.)


a. Owner made no investments in the business and no dividends were paid during the year.

__________

$

____________


b. Owner made no investments in the business but dividends were $1,400 cash per month.

__________

$

____________


c. No dividends were paid assets during the year but the owner invested an additional $45,000 cash in exchange for common stock.

__________

$

____________


d. Dividends were $1,400 cash per month and the owner invested an additional $25,000 cash in exchange for common stock.

__________

$

____________


Question 7: (0 points)

Kendis Lanelle opens a computer consulting business called Viva Consultants and completes the following transactions in its first month of operations.

April 1

Lanelle invests $130,000 cash along with office equipment valued at $31,200 in the business in exchange for its common stock.

2

Prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.)

3

Made credit purchases for $15,600 in office equipment and $3,120 in office supplies. Payment is due within 10 days.

6

Completed services for a client and immediately received $2,000 cash.

9

Completed a $10,400 project for a client, who must pay within 30 days.

13

Paid $18,720 cash to settle the account payable created on April 3.

19

Paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.)

22

Received $8,320 cash as partial payment for the work completed on April 9.

25

Completed work for another client for $2,640 on credit.

28

Paid $6,200 cash for dividends.

29

Purchased $1,040 of additional office supplies on credit.

30

Paid $700 cash for this month's utility bill.


Requirement 1:

Prepare general journal entries to record these transactions. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

 April 1

__________

____________

 

 

__________

____________

 

 

__________

 

____________

 

 

 

   

 April 2

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 3

__________

____________

 

 

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 6

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 9

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 13

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 19

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 22

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 25

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 28

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 29

__________

____________

 

 

__________

 

____________

 

 

 

 

 April 30

__________

____________

 

 

__________

 

____________



Requirement 2:

Offline (not submitted or graded in this system): Open the following ledger accounts-their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). Post journal entries from part 1 to the ledger accounts and enter the balance after each posting.


Requirement 3:

Prepare a trial balance as of April 30. (Omit the "$" sign in your response.)

VIVA CONSULTANTS
Trial Balance
April 30

 

Debit

Credit

__________

$

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

 

$

____________

__________

 

 

 

____________

__________

 

____________

 

 

__________

 

 

 

____________

__________

 

____________

 

 

Total

$

____________

$

____________



Question 8: (0 points)

The accounting records of Faviana Adriano Shipping show the following assets and liabilities as of December 31, 2007, and 2008:

 

December 31

 

2007

2008

Cash

$  52,408    

$  18,781    

Accounts receivable

28,447    

22,303    

Office supplies

4,487    

3,286    

Office equipment

137,752    

146,731    

Trucks

53,906    

53,906    

Building

0    

179,693    

Land

0    

44,842    

Accounts payable

74,790    

37,093    

Note payable

0    

104,535    



Late in December 2008, the business purchased a small office building and land for $224,535. It paid $100,000 cash toward the purchase and a $104,535 note payable was signed for the balance. Adriano had to invest $35,000 cash in the business in exchange for stock to enable it to pay the $100,000 cash. The business also pays $3,000 cash per month for dividends.


Requirement 1:

Prepare balance sheets for the business as of December 31, 2007, and 2008. (Hint: Remember that total equity equals the difference between assets and liabilities.) (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

FAVIANA ADRIANO SHIPPING
Balance Sheet
December 31, 2007

Assets

 

 

Liabilities

 

 

Current Assets

 

 

Current Liabilities

 

 

__________

$

____________

 

 

__________

$

____________

 

 

__________

 

____________

 

 

Total Current Liabilities

 

 

 

____________

__________

 

____________

 

 

 

 

 

 

 

Total Current Assets

 

 

 

____________

 

 

 

 

 

Fixed Assets

 

 

 

 

 

 

 

 

 

__________

 

____________

 

 

 

 

 

 

 

__________

 

____________

 

 

Equity

 

 

 

 

Total Fixed Assets

 

 

 

____________

Total Equity

 

 

 

____________

Total Assets

 

 

$

____________

Total Liabilities & Equity

 

 

$

____________



FAVIANA ADRIANO SHIPPING
Balance Sheet
December 31, 2008

Assets

 

 

Liabilities

 

 

Current Assets

 

 

Current Liabilities

 

 

__________

$

____________

 

 

__________

$

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

__________

 

____________

 

 

Total Current Liabilities

 

 

 

____________

Total Current Assets

 

 

 

____________

 

 

 

 

 

Fixed Assets

 

 

 

 

 

 

 

 

 

__________

 

____________

 

 

 

 

 

 

 

__________

 

____________

 

 

 

 

 

 

 

__________

 

____________

 

 

 

 

 

 

 

__________

 

____________

 

 

Equity

 

 

 

 

Total Fixed Assets

 

 

 

____________

Total Equity

 

 

 

____________

Total Assets

 

 

$

____________

Total Liabilities & Equity

 

 

$

____________


 

Requirement 2:

By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2008. (Omit the "$" sign in your response.)

Computation of 2008 net income

Equity, December 31, 2007

$

____________

 

 

 

Equity, December 31, 2008

 

____________

 

 

 

__________ in equity during 2008

 

 

 

____________

__________ Additional owner investment

 

 

 

____________

 

__________ __________

 

 

 

____________

__________ in 2008

 

 

$

____________

 



Requirement 3:

Compute the 2008 year-end debt ratio percentage for the business. (Round your answer to 2 decimal places. Omit the "%" sign, which is provided for you.)

Debt Ratio

____________

%