ACC 290 Week 3 Apply: Connect Assignment

ACC 290 Week 3 Apply: Connect Assignment

Complete the Week 3 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

1

On October 1, 2019, Helen Kennedy opened an advertising agency.

DATETRANSACTIONS

Oct. 1Helen Kennedy invested $61,000 cash in the business.

2Paid October office rent of $3,050; issued Check 1001.

5Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.

6Issued Check 1002 for $3,250 to purchase art equipment.

7Purchased supplies for $1,600; paid with Check 1003.

10Issued Check 1004 for $490 for office cleaning service.

12Performed services for $4,150 in cash and $1,950 on credit. (Use a compound entry.)

15Returned damaged supplies for a cash refund of $290.

18Purchased a computer for $3,050 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.)

20Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.

26Performed services for $4,450 on credit.

27Paid $270 for monthly telephone bill; issued Check 1007.

30Received $3,750 in cash from credit customers.

30Mailed Check 1008 to pay the monthly utility bill of $345.

30Issued Checks 1009–1011 for $8,050 for salaries.

Required:

Journalize the above transactions.
Post the above transactions to the ledger accounts.

Analyze:

What is the balance of account 202 in the general ledger?

2

The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.

DATETRANSACTIONS

Sept.1Issued Check 1169 for $1,200 to pay the September rent.

 5Performed services for $3,200 in cash.

 6Performed services for $2,050 on credit.

 10Paid $560 for monthly telephone bill; issued Check 1170.

 11Paid for equipment repairs of $800 with Check 1171.

 12Received $3,000 on account from credit clients.

 15Issued Checks 1172–1177 for $4,000 for salaries.

 18Issued Check 1178 for $1,800 to purchase supplies.

 19Purchased new tennis rackets for $2,050 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.

 20Issued Check 1179 for $2,720 to purchase new nets. (Equip.)

 21Received $910 on account from credit clients.

 21Returned a damaged net and received a cash refund of $410.

 22Performed services for $3,400 in cash.

 23Performed services for $4,990 on credit.

 26Issued Check 1180 for $600 to purchase supplies.

 28Paid the monthly electric bill of $2,390 with Check 1181.

 30Issued Checks 1182–1187 for $4,000 for salaries.

 30Issued Check 1188 for $4,000 cash to Ellis Carter for personal expenses.

Required:

Record each of the above transactions in the general journal.

Analyze:

If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?

3

The following journal entries were prepared by an employee of International Marketing Company who does not have an adequate knowledge of accounting.

GENERAL JOURNALPAGE 3

DateDescriptionPost. Ref.DebitCredit

2019    

April1Accounts Payable 14,300 

  Fees Income  14,300

  Performed services on credit   

 2Cash 690 

  Telephone Expense  690

  Paid for March telephone service, Check 1917   

 3Office Equipment 8,720 

  Office Supplies 990 

  Cash  10,300

  Purchased file cabinet and office supplies, Check 1918   

(Assume that Office Equipment and Office Supplies were recorded at the correct values.)

Required:

Examine the above journal entries carefully and prepare the correcting journal entries.

Analyze:

After the correcting journal entries have been posted, what effect do the corrections have on the company’s reported assets?