Acct 221

Ch2HomeworkUpdatedJan20241.xlsx

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Q1-Part1

Honest Tax Services had the following transactions:
June 1	Issued common stock to investors in exchange for $20,000 cash.
June 4	Provided tax services of $450 to customers. who immediately paid in cash.
June 5	Purchased $150 of supplies on account.
June 9	Paid $700 in salaries to employees.
June 10	Purchased equipment for $10,000. Paid $2,000 cash and signed an $8,000 2-year note payable.
June 14	Performed tax services of 300 to customers on account.
June 22	Received $180 from customers for tax services provided on June 14.
June 25	Paid $1,200 for a 1-year insurance policy. Coverage begins July 1.
June 30	Paid in cash $100 to partially pay for the supplies purchased on June 5.
Instructions: Prepare journal entries for the transactions, using the templates below. Do not provide explanations.
June 1	Account		VALUE
		Account		VALUE
June 4	Account		VALUE
		Account		VALUE
June 5	Account		VALUE
		Account		VALUE
June 9	Account		VALUE
		Account		VALUE
June 10	Account		VALUE
		Account		VALUE
		Account		VALUE
June 14	Account		VALUE
		Account		VALUE
June 22	Account		VALUE
		Account		VALUE
June 25	Account		VALUE
		Account		VALUE
June 30	Account		VALUE
		Account		VALUE
Account
Accounts Payable
Accounts Receivable
Cash
Common Stock
Equipment
Insurance Expense
N/A - No Entry
Notes Payable
Prepaid Advertising
Prepaid Insurance
Prepaid Rent
Rent Expense
Retained Earnings
Salary Expense
Sales Revenue
Service Revenue
Supplies
Unearned Revenue
Utilities Expense

Q1-Part2

Instructions: Post the journal entries prepared in question 1, using the T-Account format (as shown in Illustrations 2-20 through 2-29). Use the templates below.
ASSETS	LIABILITIES		EQUITY
					blue = input; red = calculated field
Cash	Accounts Payable		Common Stock
0		0		0
Accounts Receivable	Notes Payable		Service Revenue
0		0		0
Supplies			Salary Expense
0			0
Prepaid Insurance
0
Equipment
0

Q1-Part3

Instructions: Based on the T-Accounts created in question 2, prepare a trial balance at June 30, 202X.
Honest Tax Services				blue = input; red = calculated field
Trial Balance
Select
	Debit	Credit
Account
Account
Account
Account
Account
Account
Account
Account
Account
Account
	0	0	Not OK
		OK
Select
For the Month Ended June 30, 202x
June 30, 202x

Q2-Part1

Jason Ellis owns an electronics store, Wired Corporation. Wired sells product from its retail store, as well as performs computer system installations.
As of April 30, 202X, Wired had the following trial balance:

Wired Corporation
Trial Balance
April 30, 202X
			Debit	Credit
Cash			3,900
Accounts Receivable			2,225
Supplies			1,200
Prepaid Rent			1,000
Equipment			7,000
Accounts Payable				3,100
Unearned Revenue				400
Common Stock				10,000
Retained Earnings				1,825
			15,325	15,325
During May 202X, Wired had the following transactions:
May 1	Received a $500 advance on a computer system installation to be performed on May 15.
May 2	Hired a part-time sales clerk at a salary of $700 per month.
May 5	Purchased $400 of supplies on account from Paper Depot.
May 7	Received $4,000 in cash for store sales.
May 15	Completed the computer system installation booked on May 1 and billed client $1,000 for services performed.
May 18	Paid $325 cash to Electronics, Inc. for inventory purchased on credit in April.
May 20	Paid $600 for a one-year advertising campain that begins June 1.
May 24	Paid $175 cash for utilities for the month of May.
May 28	Paid $1,000 cash for Rent for June. Hint: the prepaid rent balance at April 30 must be expensed on May 31.
May 30	Paid 50% of the balance owed to Paper Depot.
Instructions: Complete the journal entries for the transactions noted below. Do not provide explanations.
May 1	Account
		Account
May 2	Account
		Account
May 5	Account
		Account
May 7	Account
		Account
May 15	Accounts Receivable				1,000
	Unearned Revenue				500
		Service Revenue				1,500
May 18	Account
		Account
May 20	Account
		Account
May 24	Account
		Account
May 28	Account
		Account
May 30	Account
		Account
May 31	Rent Expense				1,000
		Prepaid Rent				1,000

Q2-Part2

Instructions: Post the journal entries prepared in question 1, using the T-Account format. Exception: Cash - this is done for you.
The beginning balances (noted in bold blue) came from the trial balance at April 30, 202X
ASSETS	LIABILITIES		EQUITY
					blue = input; red = calculated field
Cash	Accounts Payable		Common Stock
3,900
3,900		0		0
Accounts Receivable	Unearned Revenue		Retained Earnings
0		0		0
Supplies			Sales Revenue
0				0
Prepaid Advertising			Service Revenue
0				0
Prepaid Rent			Rent Expense
0			0
Equipment			Utilities Expense
0			0

Q2-Part3

Instructions: Based on the T-Accounts created in question 2, prepare a trial balance, income statement, retained earnings, and balance sheet at May 31, 202X.
Wired Corporation					blue = input; red = calculated field
Trial Balance
Select
		Debit	Credit
Account
Account
Account
Account
Account
Account
Account
Account
Account
Account
Account
Account
Account
Account
		0	0	Not OK	HINT: total should be $20,700
			OK
Wired Corporation
Income Statement
Select
Revenues
	Account		$ -
	Account		-
Total Revenues				$ -
Expenses (List in order of magnitude)
	Account		-
	Account		-
Total expenses				$ -
Net Income (Loss)				$ -
Wired Corporation
Retained Earnings Statement
Select
Select		$ -
Select		-
		-
Select		-
Select		$ -
Wired Corporation
Balance Sheet
Select
Assets
Account		$ -
Account		-
Account		-
Account		-
Account		-
Account		-
Select		$ -
Liabilities and Stockholder's Equity
Select
Account		$ -
Account		-
Select		-
Select
Account		-
Account		-
Select		-
Select		$ -
		ok
	Select
	For the Month Ended May 31, 202x
	May 31, 202x
	Select
	Add: Net Income
	Less: Dividends
	Retained Earnings, May 1
	Retained Earnings, May 31
	Select
	Liabilities
	Stockholders' Equity
	Total Assets
	Total Liabilities
	Total Liabilities and Stockholders' Equity
	Total Stockholders' Equity