ACC 300,ACC/300,ACC-300 Week 2 Individual Problem Set I P1-3A and P3-5A
ACC 300,ACC/300,ACC-300 Week 2 Individual Problem Set I P1-3A and P3-5A:ACC/300 Version Principles of Accounting: Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons.
Complete the following problem sets in Ch. 1 & 3 of Financial Accounting:
· P1-3A
On June 1, Beardsley Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets and liabilities of the company at June 30, and the revenues and expenses for the month of June, its first month of operations:
Cash | $ 4,600 | Notes payable | $12,000 |
Accounts receivable | 4,000 | Accounts payable | 500 |
Service revenue | 7,500 | Supplies expense | 1,000 |
Supplies | 2,400 | Maintenance and repairs expense | 600 |
Advertising expense | 400 | Utilities expense | 300 |
Equipment | 26,000 | Salaries and wages expense | 1,400 |
In June, the company issued no additional stock, but paid dividends of $1,400.
Prepare an income statement, retained earnings statement, and balance sheet; discuss results.
(SO 4, 5), AP
Instructions
a. Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2012.
b. Briefly discuss whether the company’s first month of operations was a success.
c. Discuss the company’s decision to distribute a dividend.
Marginal check figures (in blue) provide a key number to let you know you are on the right track
· P3-5A
(Chapter 3 P3-5A)
Towne Architects incorporated as licensed architects on April 1, 2012. During the first month of the operation of the business, these events and transactions occurred:
Apr. | 1 | Stockholders invested $18,000 cash in exchange for common stock of the corporation. |
| 1 | Hired a secretary-receptionist at a salary of $375 per week, payable monthly. |
| 2 | Paid office rent for the month $900. |
| 3 | Purchased architectural supplies on account from Spring Green Company $1,300. |
| 10 | Completed blueprints on a carport and billed client $1,900 for services. |
| 11 | Received $700 cash advance from J. Madison to design a new home. |
| 20 | Received $2,800 cash for services completed and delivered to M. Svetlana. |
| 30 | Paid secretary-receptionist for the month $1,500. |
| 30 | Paid $300 to Spring Green Company for accounts payable due. |
The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.
Journalize transactions, post, and prepare a trial balance.
(SO 3, 5, 6, 7, 8), AP
Instructions
- Journalize the transactions, including explanations.
- Post to the ledger T accounts.
- Prepare a trial balance on April 30, 2012.
11 years ago
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