A01 Introduction to Accounting

  

Directions: Answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages.

  

Part A (30 points)

Record the following transactions in the basic accounting equation:

a. Brian invests $10,000 cash to begin an accounting service.

b. The company buys office furniture for cash, $600.

c. The company buys additional office furniture on account, $300.

d. The company makes a payment on the office furniture, $200.

                              Brian's Accounting Service 

  

ASSETS = LIABILITIES  +  OWNER'S EQUITY

Cash + Office Furniture = Accounts Payable + Brian's Capital

a.

b.

c.

d.

  

Part B (40 points)

The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial balance in good form.

Cash $1,370 

Benson, Withdrawals $ 500

Accounts Payable 770 

Accounts Receivable 1,600

Office Equipment 900 

Service Fees 2,730

Benson, Capital 1,500 

Salaries Expense 630

  

Part C (30 points)

The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.

a. Tyler invested $6,500 in the bike service from his personal savings account.

b. Bought office equipment for cash, $900.

c. Performed bike service for a customer on account, $1,000.

d. Company cell phone bill received, but not paid, $80.

e. Collected $500 from customer in transaction c.

f. Tyler withdrew $300 for personal use.