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Chapter-1 Assignment

The document describes transactions that occurred during April for American Travel Agency. It provides instructions to prepare a tabular analysis of the transactions showing effects on cash, accounts receivable, supplies, equipment, accounts payable, owner's capital, drawings, revenues and expenses. It also describes transactions that occurred in July and August for Nancy Grimwood Attorney at Law and provides instructions to prepare a tabular analysis of the August transactions. Finally, it lists transactions that occurred in May for Jenner Consulting and provides instructions to show the effects on the accounting equation.

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Dev Chatterjee
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279 views3 pages

Chapter-1 Assignment

The document describes transactions that occurred during April for American Travel Agency. It provides instructions to prepare a tabular analysis of the transactions showing effects on cash, accounts receivable, supplies, equipment, accounts payable, owner's capital, drawings, revenues and expenses. It also describes transactions that occurred in July and August for Nancy Grimwood Attorney at Law and provides instructions to prepare a tabular analysis of the August transactions. Finally, it lists transactions that occurred in May for Jenner Consulting and provides instructions to show the effects on the accounting equation.

Uploaded by

Dev Chatterjee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment No.

1
Problem 1,
On April 1, Barb Massoth established American Travel Agency. The following transactions were
completed during the month.
1. Invested $10,000 cash to start the agency.
2. Paid $400 cash for April office rent.
3. Purchased equipment for $2,500 cash.
4. Incurred $300 of advertising costs in the Chicago Tribune, on account.
5. Paid $600 cash for office supplies.
6. Recognized $9,500 for services rendered: $3,000 cash is received from customers, and
the balance of $6,500 is billed to customers on account.
7. Withdrew $200 cash for personal use.
8. Paid Chicago Tribune amount due in transaction (4).
9. Paid employees’ salaries $2,200.
10. Received $4,000 in cash from customers who have previously been billed in
transaction (6).
Instructions
(a) Prepare a tabular analysis of the transactions using the following column headings: Cash,
Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Owner’s Capital,
Owner’s Drawings, Revenues, and Expenses.
Problem 2,
Nancy Grimwood opened a law office, Nancy Grimwood, Attorney at Law, on July 1, 2017. On
July 31, the balance sheet showed Cash $4,000, Accounts Receivable $1,500, Supplies $500,
Office Equipment $5,000, Accounts Payable $4,200, and Owner’s Capital $6,800. During
August the following transactions occurred.
1. Collected $1,400 of accounts receivable.
2. Paid $2,700 cash on accounts payable.
3. Recognized revenue of $9,000 of which $3,000 is collected in cash and the balance is due in
September.
4. Purchased additional equipment for $1,000, paying $400 in cash and the balance on account.
5. Paid salaries $3,000, rent for August $900, and advertising expenses $350.
6. Withdrew $750 in cash for personal use.
7. Received $4,000 from Standard Federal Bank—money borrowed on a note payable.
8. Incurred utility expenses for month on account $550.
Instructions
(a) Prepare a tabular analysis of the August transactions beginning with July 31balances.
Problem 3,
Bruce Jenner started his own consulting firm, Jenner Consulting, on May 1, 2017.The following
transactions occurred during the month of May.
May 1 Jenner invested $8,000 cash in the business.
2 Paid $800 for office rent for the month.
3 Purchased $500 of supplies on account.
5 Paid $50 to advertise in the County News.
9 Received $3,000 cash for services provided.
12 Withdrew $700 cash for personal use.
15 Performed $4,300 of services on account.
17 Paid $3,000 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $3,000 for services provided on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased office equipment for $2,800 on account.
30 Paid $150 for utilities.
Instructions
(a) Show the effects of the transactions on the accounting equation.

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