Part A (30 points)
Record the following transactions in the basic accounting equation:
a. Brian invests $10,000 cash to begin an accounting service.
b. The company buys office furniture for cash, $600.
c. The company buys additional office furniture on account, $300.
d. The company makes a payment on the office furniture, $200.
Brian's Accounting Service
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash + Office Furniture = Accounts Payable + Brian's Capital
a.
b.
c.
d.
Part B (40 points)
The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial balance in good form.
Cash $1,370 Benson, Withdrawals $ 500
Accounts Payable 770 Accounts Receivable 1,600
Office Equipment 900 Service Fees 2,730
Benson, Capital 1,500 Salaries Expense 630
Part C (30 points)
The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a. Tyler invested $6,500 in the bike service from his personal savings account.
b. Bought office equipment for cash, $900.
c. Performed bike service for a customer on account, $1,000.
d. Company cell phone bill received, but not paid, $80.
e. Collected $500 from customer in transaction c.
f. Tyler withdrew $300 for personal use
A01.V.10.1 Introduction to Accounting
Assignment 04,
Solved answers of Accounting equation, Trial balance and T accounts
Answers:
Part A.
Brian's Accounting Service
ASSETS
|
=
|
LIABILITIES
|
+
|
OWNER'S EQUITY
| |||
Cash
|
+
|
Office Furniture
|
=
|
Accounts Payable
|
+
|
Brian's Capital
| |
a.
|
+$10,000
|
=
|
+$10,000
| ||||
b.
|
-600
|
+$600
|
=
| ||||
c.
|
+300
|
=
|
+$300
| ||||
d.
|
-200
|
=
|
-200
| ||||
End.Bal.
|
$9,200
|
+
|
$900
|
=
|
$100
|
+
|
$10,000
|
Total
|
$10,100
|
=
|
$10,100
|
Part B.
Benson's Company
Trial Balance
June 30, 20xx
Dr.
|
Cr.
| ||
Cash
|
1,370
| ||
Accounts Receivable
|
1,600
| ||
Office Equipment
|
900
| ||
Accounts Payable
|
770
| ||
Benson, Capital
|
1,500
| ||
Benson, Withdrawals
|
500
| ||
Service Fees
|
2,730
| ||
Salaries Expenses
|
630
| ||
Totals
|
5,000
|
5,000
|
Part C.
CASH
|
111
|
A. 6,500
E. 500
5,800
|
b. 900
f. 300
|
ACCOUNTS RECEIVABLE
|
112
|
C. 1,000
500
|
e. 500
|
OFFICE EQUIPMENT
|
112
|
B. 900
|
ACCOUNTS PAYABLE
|
211
|
d. 80
|
TYLER'S CAPITAL
|
311
|
a. 6,500
|
TYLER'S WITHDRAWALS
|
312
|
F. 300
|
BIKE FEES
|
411
|
c. 1,000
|
TELEPHONE EXPENSES
|
512
|
D. 80
|
