Home work assignment chapters 1 and 2

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timer Asked: Jun 3rd, 2018
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Question description

ACC 2010 – Principles of Accounting I

Manual Homework Assignment for Chapter 1 & 2

Problem 1

The amounts of the assets and liabilities of ABC Travel Agency at December 31, 2019, the end of the year, and its revenue and expenses for the year are listed below.The capital of Walter Owens, the owner, was $670,000 on January 1, 2019, the beginning of the year.During the year, Walter withdrew $42,000.

Accounts Payable

$69,500

Rent Expense

$36,000

Accounts Receivable

285,000

Supplies

5,500

Cash

190,500

Supplies Expense

4,100

Service Revenue

912,500

Utilities Expense

28,500

Land

544,000

Wages Expense

510,000

Miscellaneous Expense

6,400

Instructions

Use the space below and on the next sheet to:

1.Prepare an income statement for the year ended December 31, 2019.

2.Prepare a statement of owner’s equity for the year ended December 31, 2019.

3.Prepare a balance sheet as of December 31, 2019.

Refer to the financial statement examples on page 22 of your textbook.Pay very close attention to proper format!Prepare the statements in the order listed above.



Problem 2

Frannie Marks, an architect, opened an office on October 1, 2019.During the month, she completed the following transactions connected with her professional practice:

a.Contributed cash from a personal bank account to an account to be used for the business, $36,000.

b.Paid October rent for the office and workroom, $2,400.

c.Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder.

d.Purchased office and computer equipment on account, $9,000.

e.Paid cash for supplies, $2,150.

f.Paid cash for annual insurance policies, $4,000.

g.Received cash from client for plans that were delivered in October, $12,200.

h.Paid cash for miscellaneous expenses, $815.

i.Paid cash to creditors on account, $4,500.

j.Paid $5,000 on note payable.

k.Received invoice for blueprint service, due in November, $2,890.

l.Recorded fees earned on plans delivered, payment to be received in November, $18,300.

m.Paid salary of assistants, $6,450.

n.Paid gas, oil, and repairs on automobile for October, $1,020.

o.Withdrew cash for personal use, $1,500.

Instructions

Use the Journal below and on the following page to journalize entries for transactions (a) through (o), using the following account titles: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; F Marks, Capital; F Marks, Drawing; Service Revenue; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense.

Be sure to review proper Journal Entry format!Explanations are required!

Date

Title and Explanation

Ref

Debit

Credit

Date

Title and Explanation

Ref

Debit

Credit

Tutor Answer

Tutor_Booth
School: Rice University

Hey buddy, I've attached the answer, good luck!

Surname 1
Name
Supervisor
Course
Date
Problem 1
Income Statement for the year ended December 31, 2019
Revenues
Service Revenue

Amount($)

Amount($)

912,500

Total Revenue

912,500

Operating Expeneses
Rent Expense

36,000

Supplies Expense

4,100

Utilities Expense

28,500

Miscellaneous Expense

6,400

Wage Expense

510,000

Total Expenses

(585,000)

Net Income

327,500

Statement of owner equity for the year ended December 31, 2019
Amount ($)
Beginning Equity

670,000

Retained Earnings

327,500

Withdrawals
Ending Equity

(42,000)
955,500

Su...

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Review

Anonymous
Thanks, good work

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