accounting homework

Transactions

Dec. 1

Harris deposits $45,000 into the business bank account. In exchange, she receives capital in the proprietorship.

|X|

1

Harris writes and mails check #001 for $2,400 for rent. The rent payment covers rent for the three months ended February 28, 20x2.

|X|

2

Harris purchases office equipment for $1,800 by check #002.

|_|

2

Harris purchases office supplies for $420 by check #003.

|_|

2

Harris purchases 20 Model X mopeds at $500 each and 15 Model L mopeds at $800 each, costing a total of $22,000, on account from a supplier, Fun Brands:

· Harris elects to use the first-in-first-out (FIFO) method to account for inventory.

· Fun Brands provides an invoice with the following terms: 2/10 net 30.

|_|

9

In the first week of operation, City Rides sells 16 Model X mopeds at $750 each: 10 are sold on account, and the rest are sold for cash.

|_|

12

City Rides makes payment to Fun Brands in full settlement of accounts payable by check #004. Payment is net of the purchase discount. Hint: The terms are 2/10 net 30, and any purchase discount received reduces the cost of inventory.

|_|

13

City Rides purchases 10 Model X mopeds from Fun Brands on account at a cost of $520 each.

|_|

16

The sales for the week are as follows: 6 Model X mopeds sold on account for $750 each—inventory cost accounted using the FIFO method.

|_|

18

Cash receipts from customers on accounts receivable are $7,100.

|_|

30

Sales for the rest of December are as follows: 2 Model L mopeds sold for cash for $1,100 each.

|_|

30

Harris receives the utilities bill for December 20X2 for $650, still payable at month end.

|_|

30

Harris pays wages amounting to $1,800 by check #005.

|_|

30

Harris withdraws $2,500 in cash.

|_|

Account Name

Account Type

Cash

Accounts Receivable

Supplies

Prepaid Rent

Inventory

Office Equipment

Accumulated Depreciation—Office Equipment

Accounts Payable

Capital—Harris

Withdrawals—Harris

Income Summary

Sales Revenue

Cost of Goods Sold

Wages Expense

Rent Expense

Depreciation Expense—Office Equipment

Supplies Expense

MODEL X

MODEL L

Date

Purchase (sale)

Quantity

Cost per unit

Total

Date

Purchase (sale)

Quantity

Cost per unit

Total

Dec. 2

Purchase

20

$500

$10,000

Dec. 2

purchase

15

$800

$12,000

9

(Sale)

(16)

$500

($8,000)

30

13

16

16

Date

Account and Explanation

Debit

Credit

Dec 1

Cash

$45,000

Capital

$45,000

To record owner contribution

1

Prepaid Rent

$2,400

Cash

$2,400

To record prepaid expense

Date

Account and Explanation

Debit

Credit

Adjustments

Dec. 31

Depreciation on office equipment, $360

|_|

31

Supplies used, $300

|_|

31

Recognized rent expense—prepaid rent account

|_|

City Rides

Accounting Worksheet

For the Month Ended Dec. 31 20x2

Account

Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Balance Sheet

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$19,020

Accounts Receivable

12,000

Prepaid Rent

2,400

Supplies

420

Inventory

15,720

Office Equipment

1,800

Accumulated Depreciation—Office Equipment

-

Accounts Payable

$5,850

Capital—Harris

45,000

Withdrawals—Harris

2,500

Sales Revenue

16,500

Cost of Goods Sold

11,040

Wages Expense

1,800

Rent Expense

-

Depreciation Expense—Office Equipment

-

Utilities Expense

650

Supplies Expense

-

Total

$67,350

$67,350

Net Income

TOTAL

City Rides

Trial Balance

December 31, 20x2

Account

Debit

Credit

Cash

$19,020

Accounts Receivable

12,000

Prepaid Rent

1,600

Supplies

120

Inventory

15,720

Office Equipment

1,800

Accumulated Depreciation—Office Equipment

360

Accounts Payable

5,850

Capital—Harris

45,000

Withdrawals—Harris

2,500

Sales Revenue

16,500

Cost of Goods Sold

11,040

Wages Expense

1,800

Rent Expense

800

Depreciation Expense—Office Equipment

360

Utilities Expense

650

Supplies Expense

300

$67,710

$67,710

City Rides

Income Statement

For the Year Ended December 20x2

Sales Revenue

Less Expenses:

Net Income

City Rides

Statement of Owner’s Equity

For the Year Ended December 20x2

Beginning Capital

Ending Capital, Harris

City Rides

Balance Sheet

December 31, 20x2

Assets

Liabilities

Owner’s Equity

Total Assets

Total Liabilities and Owner’s Equity

Closing Temporary Accounts

Using the journal template given, make the following closing entries. Use the revenue, expense, and withdrawals balances given before.

Closing Entries

31

Closed Sales Revenues to Income Summary Account

|_|

31

Closed Expense Accounts to Income Summary Account

|_|

31

Closed Income Summary Account to Capital—Harris, Account

|_|

31

Closed Withdrawals—Harris Account to Capital Account

|_|

Date

Account and Explanation

Debit

Credit

Dec 31

To close sales revenue to income summary

31

To close expenses to income summary

31

To close income summary

30

To close withdrawals account