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A05E Assignment 4

Wilson Wood opened a sole proprietorship called Woody's Web Services. The business had various cash receipts and payments throughout June. Students are asked to record the transactions on a spreadsheet to analyze the financial position of the business. They should enter formulas, record increases and decreases to accounts, and prepare key financial statements including an income statement, statement of owner's equity, and balance sheet.

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173 views2 pages

A05E Assignment 4

Wilson Wood opened a sole proprietorship called Woody's Web Services. The business had various cash receipts and payments throughout June. Students are asked to record the transactions on a spreadsheet to analyze the financial position of the business. They should enter formulas, record increases and decreases to accounts, and prepare key financial statements including an income statement, statement of owner's equity, and balance sheet.

Uploaded by

Victor Odoyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ASSIGNMENT 04

A05 Accounting Spreadsheet Fundamentals


Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth
College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use
correct English, spelling and grammar. Show all work.

BUSINESS TRANSACTIONS (PTRANS)

Note: For a problem using the corporate form of business organization, download the FTRANS
file that is attached to this assignment.

PROBLEM DATA

On June 1 of the current year, Wilson Wood opened Woodyʼs Web Services. This sole
proprietorship had the following transactions during June.

a. Opened a business checking account and made a deposit, $9,000.


b. Paid rent for June for office space and computer equipment, $3,000.
c. Purchased office supplies (stamps, pens, etc.) on account, $1,980.
d. Received cash for services rendered, $4,500.
e. Paid creditor for office supplies purchased on account, $1,400.
f. Purchased office supplies for cash, $420.
g. Billed clients for consultations performed on account, $4,600.
h. Paid monthly internet service bill of $360.
i. Paid the secretary’s salary of $2,400.
j. Returned $300 of office supplies purchased in transaction f. Received a full refund.
k. Received cash from clients previously billed, $3,000.
l. Cash was withdrawn for owner’s personal use, $2,000.

REQUIREMENT

1. Review the printout of the worksheet PTRANS. You have been asked to complete the
worksheet by recording these transactions.

2. Open the file PTRANS file that is attached to this assignment. Enter the formulas in the
appropriate cells on the worksheet. Then enter the increases and decreases resulting from
each transaction on the worksheet. For example, the first transaction increases the cash
account by $9,000 and also increases the capital account by $9,000.

This transaction has already been recorded on the worksheet. The worksheet will
automatically total each column as values are entered in that column. Enter negative
numbers with a minus sign (–). When you are finished, check row 26 to make sure that
total assets equal total liabilities and equity.
3. It has been determined that the cost of the supplies used during the month was $600.
Record the increase or decrease in the appropriate columns on the worksheet. This is
transaction m. Enter your name in cell A1. Save the completed file as PTRANS3. Submit
the worksheet. Also submit your formulas. Check figure: Ending cash balance (cell B21),
$7,220.

4. How does transaction m differ from transactions a through l? In other words, why is it
treated as a special item?

5. Prepare an income statement, a statement of owner’s equity (capital statement), and a


balance sheet in good form for Woodyʼs Web Services for the month of June.

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