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copy_of_ac2760_wk01_assign.xlsxInstructions
| AC2760 Week 1 Assignment | |
| Background: | |
| Cody Macedo established an insurance agency on January 1 of the current year and completed the following transactions during January: | |
| (a) | Opened a business bank account with a deposit of $75,000 in exchange for capital stock. |
| (b) | Purchased supplies on account, $3,000. |
| (c) | Paid creditors for account, $1,000. |
| (d) | Received cash from fees earned on insurance commissions, $11,800. |
| (e) | Paid rent on office and equipment for the month, $4,000. |
| (f) | Paid automobile expenses for month, $600, and miscellaneous expenses, $200. |
| (g) | Paid office salaries, $2,500. |
| (h) | Determined that the cost of supplies on hand was $1,900; therefore, the cost of supplies used during the month was $1,100. |
| (i) | Billed insurance companies for sales commissions earned, $12,500. |
| (j) | Paid dividends, $5,000. |
| To Do: | |
| 1 | In tabular form, indicate the effect each transaction has on the accounts. Calculate the balance of each account after all the transactions have been entered. |
| 2 | Using the account balances at the end of the month, prove the accounting equation is in balance. |
| Use the prepared forms on the Worksheet (click on the tab below) to complete each of the exercises described here. | |
Week 1 Worksheet
| Name: | ||||||||||||||||||||||||||||||||||
| Section (if applicable): | ||||||||||||||||||||||||||||||||||
| Enter the appropriate amount or item in the shaded cells. | ||||||||||||||||||||||||||||||||||
| An asterisk (*) will appear next to an incorrect amount in the outlined cells. | ||||||||||||||||||||||||||||||||||
| 1 | ||||||||||||||||||||||||||||||||||
| Assets | = | Liabilities | + | Stockholders' Equity | ||||||||||||||||||||||||||||||
| Accounts | Accounts | Capital | --------------Retained Earnings-------------- | |||||||||||||||||||||||||||||||
| Cash | + | Receivable | + | Supplies | = | Payable | + | Stock | + | Revenue | - | Expenses | - | Dividends | ||||||||||||||||||||
| (a) | 75,000 | = | 75,000 | |||||||||||||||||||||||||||||||
| (b) | 3,000 | = | 3,000 | |||||||||||||||||||||||||||||||
| (c) | = | |||||||||||||||||||||||||||||||||
| (d) | 11,800 | = | 11,800 | |||||||||||||||||||||||||||||||
| (e) | = | |||||||||||||||||||||||||||||||||
| (f) | = | |||||||||||||||||||||||||||||||||
| (g) | = | |||||||||||||||||||||||||||||||||
| (h) | = | |||||||||||||||||||||||||||||||||
| (i) | 12,500 | = | ||||||||||||||||||||||||||||||||
| (j) | = | |||||||||||||||||||||||||||||||||
| Jan | 31st | 73,500 | 12,500 | 1,900 | = | 75,000 | ||||||||||||||||||||||||||||
| 2 | Jan 31st | |||||||||||||||||||||||||||||||||
| Assets | = | Liabilities | + | Stockholders' Equity | ||||||||||||||||||||||||||||||
| Accounts | Accounts | Capital | --------------Retained Earnings-------------- | |||||||||||||||||||||||||||||||
| Cash | + | Receivable | + | Supplies | = | Payable | + | Stock | + | Revenue | - | Expenses | - | Dividends | ||||||||||||||||||||
| 73,500 | + | 12,500 | + | 1,900 | = | + | 75,000 | + | - | - | ||||||||||||||||||||||||
| = | + |
UMA Computer: UMA Computer: Total of stockholders' equity. Add all amount included in stockholders' equity. | ||||||||||||||||||||||||||||||||
| 87,900 UMA Computer: UMA Computer: Total of assets. Add all amounts on the left side of the equal. | = |
UMA Computer: UMA Computer: Total liabilities and stockholders' equity. |
UMA Computer: UMA Computer: Total of assets. Add all amounts on the left side of the equal. |
UMA Computer: UMA Computer: Total of liabilities. Add all amount included in liabilties. | ||||||||||||||||||||||||||||||
