Principles of Accounting: Volume 1, Financial Accounting( 2.4 Assignment: Spreadsheet Exercises)

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Home>Business & Finance homework help>Accounting homework help>Principles of Accounting: Volume 1, Financial Accounting( 2.4 Assignment: Spreadsheet Exercises)

#1

Assignment 2.4 Exercises
Problem 1: Identifying Credits and Debits 5 Points
One of the first steps towards creating financial statements is recording financial transactions. Identify whether the following transactions would be recorded as either debit or credit entries.
Use the Template Provided Below to Indicate Your Answers (Mark each as either "Debit" or "Credit")
Input / Output area:
Cash decrease
Supplies decrease
Accounts payable increase
Common stock decrease
Interest payable increase
Notes payable decrease
Equipment decrease
Common Stock Sold increase
Gas and Oil Expense increase
Service revenue decrease
This is the student template, provided in the assignment instructions October 2019

#2

Assignment 2.4 Exercises
Problem 2: Preparing Journal Entries 5 Points
Prepare Journal Entries to record the 5 transactions shown below. Fill in the template showing the appropriate credits and debits, accounts, and descriptions.
March 1, issued Common Stock for cash $ 15,000
March 11, purchased inventory on account (on credit) 18,500
March 15, sold merchandise to customer for cash 555
March 20, paid supplier for part of March 11 purchase 3,700
March 28, purchased land for cash 20,000
The first journal entry is completed for you as an example. Complete the remaining four transactions.
Use the Template Provided Below to Indicate Your Answers (Fill in the blanks appropriately)
Output area:
Journal
Date Account Debit Credit
March 1 Cash $ 15,000
Common Stock $ 15,000
Received cash in exchange for Common Stock issued
This is the student template, provided in the assignment instructions October 2019

#3

Assignment 2.4 Exercises
Problem 3: Preparing Journal Entries 10 Points
Prepare Journal Entries to record the 5 transactions shown below. Build a table showing the appropriate credits and debits, accounts, and descriptions.
Date Transaction Amount
January 1 A trucking company is started when the owner contributes his cargo van in exchange for Stock $ 20,000
January 5 The company purchases office furniture, with immediate delivery, and payment due 45 days after delivery 7,850
January 7 An advertisement is placed in the newspaper and paid for with cash 250
January 11 Services are performed for a client. They are billed. 535
February 19 The office furniture is paid for with cash 7,850
Create your Original Solution Below - Create a table showing all the appropriate credits, debits, accounts, and descriptions.
This is the student template, provided in the assignment instructions October 2019

#4

Assignment 2.4 Exercises
Problem 4: Preparing T-Accounts 5 Points
Post the following transactions to T-accounts for Accounts Receivable, Accounts Payable, Revenue, Cash, and Inventory, indicating the appropriate credits and debits, as well as the ending balance (assume no beginning balances in these accounts).
A. Sold product to customers for cash $ 5,600
B. Provided services to customers on account (credit) 4,700
C. Collected cash from customer accounts 3,500
D. Purchased inventory on account (using credit) 14,500
E. Paid vendors for part of inventory previously purchased 8,500
Use the Template Provided Below to Indicate Your Answers (Fill in the blanks appropriately)
Cash Accounts Receivable
A. B.
C. C.
E.
$ - 0 $ - 0
Revenue Accounts Payable
A. D.
B. E.
$ - 0 $ - 0
Inventory Sum of Debits $ - 0
D. Sum of Credits $ - 0
Check: $ - 0
$ - 0
This is the student template, provided in the assignment instructions October 2019

#5

Assignment 2.4 Exercises
Problem 5: Preparing T-Accounts 10 points
Post the following transactions to T-accounts for Accounts Receivable, Accounts Payable, Revenue, Cash, and Supplies indicating the appropriate credits and debits, as well as the ending balance (assume no beginning balances in these accounts).
A. Provided services to customers for cash $ 2,500
B. Provided services to customers on account (credit) 2,900
C. Purchased supplies on accounts (using credit) 800
D. Paid vendors for supplies previously delivered 650
E. Collected cash from customer accounts 1,600
Create your Original Solution Below - Create T-account tables showing all the appropriate credits, debits, accounts, and balances.
This is the student template, provided in the assignment instructions October 2019

#6

Assignment 2.4 Exercises
Problem 6: Preparing Adjusting Journal Entries 5 Points
Prepare Journal Entries to record the 5 adjusting transactions shown below. Fill in the template showing the appropriate credits and debits, accounts, and descriptions.
Date Transaction Amount
January 31 One month has passed on a pre-paid insurance policy intially worth $12,000 $ 2,000
February 15 Company completes $7,300 of services for a client who had previously pre-paid $10,000 in advance 7,300
February 28 Employees earn $17,000 in salary but this will not be paid until the next pay period in March 17,000
March 15 An inventory of supplies reveals $2,350 worth has been consumed since they were purchased 2,350
March 31 Depreciation allocated on Fixed Assets for the quarter 28,170
The first journal entry is completed for you as an example. Complete the remaining four transactions.
Use the Template Provided Below to Indicate Your Answers (Fill in the blanks appropriately)
Output area:
Journal
Date Account Debit Credit
Jan 31 Insurance Expense $ 2,000
Prepaid Insurance $ 2,000
Used one month of 6-month $12,000 pre-paid policy
This is the student template, provided in the assignment instructions October 2019

#7

Assignment 2.4 Exercises
Problem 7: Preparing Adjusting Journal Entries 10 Points
Prepare Journal Entries to record the 5 adjusting transactions shown below. Build a table showing the appropriate credits and debits, accounts, and descriptions.
Date Transaction Amount
January 31 The company has collected $700 cash for sales taxes from its customers this month, but the taxes aren't due to the state until the end of the quarter $ 700
March 31 An end-of-quarter physical inventory discovers $300 worth of parts has mysteriously gone missing 300
April 7 A review of the company's bank statement reveals $73 of interest earned that has not been recorded 73
April 30 Salaries are paid bi-weekly. Employees have earned $1500 that will not be paid until the next May pay period. 1,500
May 31 Five months has been consumed on a one-year pre-paid insurance policy intially worth $3,600 1,500
Create your Original Solution Below - Create a table showing all the appropriate credits, debits, accounts, and descriptions.
This is the student template, provided in the assignment instructions October 2019