ACC 501

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Exercise 1

ACC501 Homework Exercise 1
Common Account Types
Current Asset Don't move these. Used in validation below.
Property, Plant, Equipment
Other Asset
Current Liability
Long Term Liability
Owners' Equity
Revenue - Sales
Revenue - Other
Expense - Operating
Expense - Other
1.       Enter the Account Type for each of the following accounts.
2.       Enter “Debit” or “Credit” for the kind of entry that will increase each account’s balance.
3.       Enter the statement that each account will appear on: Balance Sheet, Income Stmt, or Retained Earnings.
Name Account Type To Increase Financial Statement
Accounts payable
Accounts receivable
Accumulated depreciation
Allowance for uncollectible accounts
Buildings
Cash
Common stock
Contingent liability
Cost of goods sold
Delivery truck
Depreciation expense
Dividends
Entertainment
Fuel, gasoline
Furniture & fixtures
Interest expense
Interest income
Interest payable
Interest receivable
Land
Maintenance
Merchandise Inventory
Notes payable
Notes payable, over one year
Patents
Payroll expense
Petty Cash
Preferred stock
Prepaid rent
Product Sales
Rent expense
Retained earnings, prior
Salaries
Sales discounts
Savings account
Supplies inventory
Travel expense
Treasury Bills
Unearned revenue
Utilities expense

Exercise 2

ACC501 Homework Exercise 2
1. For each of the following transactions, write the Journal Entry. Insert extra rows as necessary.
a.       Owners invested $60,000 cash in the corporation in exchange for 6,000 shares of common stock.
b.       Delivery truck purchased for $50,000 cash
c.       Paid rent of $4,000 for current month and another $4,000 for next month
d.       Purchase for-sale inventory costing $37,000 on account
e.       Borrowed $35,000 for Bank of America due in 3 years
f.        Sold $45,000 worth of merchandise on account. The cost of that merchandise was $20,000
g.       Customers paid $14,000 of what they owed
h.       Paid employee salaries of $8,500
i.         Paid suppliers $10,000 of the amount owed
j.         A bill from Verizon Wireless for $250 was received
k.       Purchased printer ink and paper from Costco, wrote check for $120
l.         Filled up the delivery truck with Regular 87 at ARCO, paid $80 cash
2. Prepare a Trial Balance based upon those Journal Entries

Exercise 3

ACC501 Homework Exercise 3
The following is a Trial Balance of Performance Bicyles, Inc. for the year ended September 30, 2012:
Dr. Cr.
Accounts payable 40,000
Accounts receivable 10,000
Accumulated depreciation 25,000
Cash 15,000
Common stock 2,000
Cost of goods sold 180,000
Depreciation expense 10,000
Dividends 10,000
Delivery trucks 150,000
Insurance expense 20,000
Inventory 65,000
Note payable (due in 8 months) 43,000
Office expense 15,000
Retained earnings, October 1, 2011 55,000
Sales 400,000
Wages expense 90,000
Trial balance totals 565,000 565,000
Use the template below to:
Prepare an income statement in good form for the year ended September 30, 2012
Prepare in good form a statement of retained earnings for the year ended September 30, 2012
Prepare in good form a balance sheet as of September 30, 2012
Income Statement Statement of Retained Earnings
Beginning balance
$
Add:
Operating Expenses:
Less:
Ending balance
$
Total Operating Expenses $
Net Income (Loss) $
Balance Sheet
ASSETS LIABILITIES and OWNER'S EQUITY
Current Assets: Current Liabilities:
Total Current Assets $ Total Current Liabilities $
Property and Equipment: Long-Term Liabilities:
$
Stockholders' Equity:
Other assets:
Total Stockholders' Equity $
Total Assets $ Total Liabilities and Equity $