ACC 290 Week 2 Practice: Connect Practice Assignment

ACC 290 Week 2 Practice: Connect Practice Assignment

Complete the Week 2 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments

1

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on.

Cash

(a)95,000(b)23,000

(d)15,000(e)350

(g)1,500(h)5,500

  (i)2,500

Equipment

(c)40,000  

Accounts Receivable

(f)5,000(g)1,500

Accounts Payable

  (c)40,000

Supplies

(b)23,000  

Wade Wilson, Capital

  (a)95,000

Fees Income

  (d)15,000

  (f)5,000

Telephone Expense

(e)350  

Wade Wilson, Drawing

(i)2,500  

Salaries Expense

(h)5,500  

Determine the balance of each account.

2

Derrick Wells decided to start a dental practice. The first five transactions for the business follow.

Derrick invested $45,000 cash in the business.
Paid $15,000 in cash for equipment.
Performed services for cash amounting to $4,500.
Paid $1,900 in cash for advertising expense.
Paid $1,500 in cash for supplies.

(1) Select which two accounts are affected in each of the above transactions.

(2&3) Post the above transactions into the appropriate T accounts.

3

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

Guttery invested $80,000 in cash to start the business.
Paid $3,000 for the current month’s rent.
Bought office furniture for $8,360 in cash.
Performed services for $4,100 in cash.
Paid $625 for the monthly telephone bill.
Performed services for $7,000 on credit.
Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.
Received $3,500 from credit clients.
Paid $2,000 in cash for office cleaning services for the month.
Purchased additional office chairs for $2,900; received credit terms of 30 days.
Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $4,700 to pay salaries.
Performed services for $7,250 in cash.
Performed services for $8,000 on credit.
Collected $4,000 on accounts receivable from charge customers.
Issued a check for $1,450 in partial payment of the amount owed for office chairs.
Paid $350 to a duplicating company for photocopy work performed during the month.
Paid $610 for the monthly electric bill.
Guttery withdrew $4,500 in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:

What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

4

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local Housing rentals.

Cash

(a)95,000(b)23,000

(d)15,000(e)350

(g)1,500(h)5,500

  (i)2,500

Equipment

(c)40,000  

Accounts Receivable

(f)5,000(g)1,500

Accounts Payable

  (c)40,000

Supplies

(b)23,000  

Wade Wilson, Capital

  (a)95,000

Fees Income

  (d)15,000

  (f)5,000

Telephone Expense

(e)350  

Wade Wilson, Drawing

(i)2,500  

Salaries Expense

(h)5,500  

Required:

Prepare a statement of owner’s equity and a balance sheet for Residential Relocators as of December 31, 2019.

5

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.

Cash

(a)95,000(b)23,000

(d)15,000(e)350

(g)1,500(h)5,500

  (i)2,500

Equipment

(c)40,000  

Accounts Receivable

(f)5,000(g)1,500

Accounts Payable

  (c)40,000

Supplies

(b)23,000  

Wade Wilson, Capital

  (a)95,000

Fees Income

  (d)15,000

  (f)5,000

Telephone Expense

(e)350  

Wade Wilson, Drawing

(i)2,500  

Salaries Expense

(h)5,500  

Required:

Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.

6

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019.

Transactions:

Guttery invested $80,000 in cash to start the business.
Paid $3,000 for the current month’s rent.
Bought office furniture for $8,360 in cash.
Performed services for $4,100 in cash.
Paid $625 for the monthly telephone bill.
Performed services for $7,000 on credit.
Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.
Received $3,500 from credit clients.
Paid $2,000 in cash for office cleaning services for the month.
Purchased additional office chairs for $2,900; received credit terms of 30 days.
Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $4,700 to pay salaries.
Performed services for $7,250 in cash.
Performed services for $8,000 on credit.
Collected $4,000 on accounts receivable from charge customers.
Issued a check for $1,450 in partial payment of the amount owed for office chairs.
Paid $350 to a duplicating company for photocopy work performed during the month.
Paid $610 for the monthly electric bill.
Guttery withdrew $4,500 in cash for personal expenses.

Required:

Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 2019. Determine the account balances before you start work on the financial statements.

Analyze:

What is the change in owner’s equity for the month of June?