High Corp Exercise

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birevg27

Business Finance

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Below is what information my professor has given me, along with the files that will coordinate with what I need to do.

Attached you will find an accounting exercise for the High Corporation. Your task is to complete the transactions for each date listed in the exercise documenting the following under each date: the accounts, type of account (Asset, Liability, Equity, Revenue, Expense), did the account increase or decrease, and the amount. Once the transactions are completed then you will post (transfer) the data from each transaction to its appropriate T - Account found in the Excel document T-Accounts. Note that there is a separate worksheet within the Excel document for each type of account (Asset, Liability, Equity, Revenue, Expense). When all of the transactions have been posted then you will close out the T - Accounts. This means you deduct all of the decreases from any increases and this will leave you with a total. The closed out totals from the T - Accounts are then posted to their proper financial statement (Income Statement or Balance Sheet).

As you work through the transactions ask yourself these four questions. They will help in figuring out where to put the data:

- What are the accounts? (REMEMBER: Double entry accounting requires that at least two accounts are impacted in every transaction). The answer to this question will come from the middle column of the Chart of accounts.

- What type of accounts are they? The answer to these questions will come from the left column of the Chart of Accounts.

- Did they increase or decrease? As a result of the transaction, do you have more of something or less of something?

- By how much?

Some of the answers have been provided for you. It is up to you to complete the transactions and postings to correctly complete the Income Statement and Balance Sheet.

Download the attached file and complete the assignment according to the directions in the document. Then, click this link to submit your work.

So, when you are finished you will submit the following documents as part of this assignment:

- High Corp Exercise hand out with all transactions completed, income statement, and balance sheet completed

- High Corp T - Accounts completed and closed out

(Note: To submit your work, first save your completed document on your computer. Then, click this link to open the assignment submission page. Click Browse My Computer to locate and attach your document. Click Submit.)

Final notes / tips:

1. You must show your work under each transaction to display names of accounts, types of accounts, + / -, and amount. Use the first transaction as a model for all subsequent transactions.

2. Do not submit this assignment as a PDF but rather as a WORD or EXCEL document.

3. In an effort to help you really learn the material you will be able to submit / resubmit this assignment until it is correct. When you submit it I will make comments regarding necessary corrections and return the materials to you.

4. This is an all or nothing assignment (all 50 points or no points) as accounting can't be almost correct.

Unformatted Attachment Preview

Cost Controls and Budgeting Chapter 2 Recording Accounting Transactions Print Date: May 22, 2003 Analyzing Transactions With Journal Entries Understanding how to record transactions is easier accomplished by actually doing it. We will record a transaction in the Journal and then post that transaction to the appropriate T-account. The Journal referred to here is the general Journal that we talked about earlier. The term "post" means to transfer, and the T-account is the appropriate account (in the chart of accounts) to determine the correct balance at the time of the "closing of the books." Remember that this is the manual method of doing this and that in most cases today, the computer does these activities when using electronic spreadsheets. Demonstration Problem (Use the space provided between each statement to record your transaction entry.) The High Corporation was formed on April one of the current year. The company is involved in the excavating business. Journalized the following transactions for the month of April for High Corporation, and prepare a balance sheet and income statement for High for the month of April. For count titles, see the income statement and balance sheet for the High Corporation on page 2 – 7. April 1 April 1 The corporation is organized by selling stock for $50,000. Cash Asset + $50,000 Common stock Equity + $50,000 Purchased a parcel of land for $8,000. Paid $1,000 in cash and issued a promissory note for the balance. April 1 Purchased with cash-excavating equipment for $10,000. April 1 Purchased a two-year liability insurance premium for $3,264. Paid cash. April 10 Purchased office supplies for $1,240 on account. April 12 Purchased a used bulldozer for $3,700 cash. April 14 Paid $2,400 to rent a warehouse for one year. April 15 Paid Jones Construction Company $7,000 for a building to be used as an office. Cash Asset - $7,000 Building Asset + $7,000 April 16 Paid the employee salaries of $4,000. April 17 Billed Powers Construction $8,000 for excavating work performed in April. April 18 Received $13,000 from Settle Contractors Inc. for excavating work performed earlier in the month. April 19 Cash Asset + $13,000 Exc. Revenue Revenue + $13,000 Paid $2,000 on the note payable signed on April 1. April 21 Paid $750 for advertising incurred during April. April 22 Received a check from Powers Construction for $1,800 for work completed in April. April 23 Received a bill for utilities from Bonneville Power Company for $200. Bill to be paid in May. Accounts Payable Liabilities + $200 Utilities Expense Expenses + $200 April 25 Paid Amoco Oil Company bill for $1,200 for gasoline used during April. April 26 Billed Toronto Contractors Inc. $7,500 for work performed in April. April 27 Paid $1,300 for repairs made on the bulldozer. April 30 Recognized insurance expense for the month of April. April 30 Recognized the salary expense of $3,800. These salaries are to be paid in May. April 30 Remaining office supplies amount is $400. April 30 Recognized a portion of the prepaid rent on the warehouse. Post-all of these transactions to the appropriate T-account and then fill in the number in the Income Statement and Balance Sheets for the High Corporation. High Corporation The Income Statement For the Month Ended April 30 Revenues: Excavating revenue $28,500 Expenses Salaries expense Utilities expense Office supplies expense Advertising expense Rent expense Gasoline expense Insurance expense Repairs expense Net income $16,074 High Corporation Balance Sheet as of April 30 Assets Liabilities & Stockholders’ Equity Cash Accounts Payable Accounts Receivable Note payable Prepaid insurance Salaries payable Repaid rent Total liabilities $10,240 Office supplies Land Building Common stock Equipment_________________ Retained earnings________________ Total Assets Total Stockholders’ Equity $76,314 _________________________________ Total Liabilities & Stockholders’ Equity High Corporation Assets Cash Date + D 1-Apr $ 50,000 A/R - C Date +D - C Date PrePaid Rent + D - C Date PrePaid Insurance + D - C Date Office Supplies + D - C Land Date + D Date + D Building - C Equipment - C Date + D - C Liabilities A/P Date - D Date N/P + C Date - D Salaries Payable + C - D + C Equity Date 1-Apr Common Stock - D + C $ 50,000 Date Retained Earnings - D + C Revenue Excavating Revenue Due - D + C Expenses Date + D Salaries Expense - C Date Utilities Expense + D Date Office Supplies Expense + D - C Date Advertising Expense + D - C Date Gasoline Expense + D - C Rent Expense Date + D - C Date Insurance Expense + D - C - C Repairs Expense Date + D - C
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Really useful study material!

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