Start by reading and following these instructions:
1. Quickly skim the questions or assignment below and the assignment rubric to help you focus.
2. Read the required chapter(s) of the textbook. Some answers may require you to do additional research on the Internet or in other reference sources. Choose your sources carefully.
3. Consider the discussion and the any insights you gained from it.
4. Produce the Assignment submission in a single Microsoft Word or Open Office document. Be sure to cite your sources, use APA style as required, check your spelling.
1. From the following trial balance, identify which statement each title will appear on:
a. Income statement (IS)
b. Statement of owner’s equity (OE)
c. Balance sheet (BS)
Nov. 30, 201X
A. Cash 600
B. Computer 100
C. Computer Equipment 1,000
D. Accounts Payable 800
E. L. Bradford, Capital 200
F. L. Bradford, Withdrawals 500
G. Legal Fees Earned 1,500
H. Consulting Fees Earned 300
I. Wage Expense 200
J. Supplies Expense 250
K. Internet Advertising Expense 150
Totals 2,800 2,800
2. SANCHEZ COMPUTER CENTER
The Sanchez Computer Center created its chart of accounts as follows:
Chart of Accounts as of July 1, 201X
1000 Cash 4000 Service Revenue
1020 Accounts Receivable Expenses
1030 Supplies 5010 Advertising Expense
1080 Computer Shop Equipment 5020 Rent Expense
1090 Office Equipment 5030 Utilities Expense
Liabilities 5040 Phone Expense
2000 Accounts Payable 5050 Supplies Expense
Owner’s Equity 5060 Insurance Expense
3000 Freedman, Capital 5070 Postage Expense
3010 Freedman, Withdrawals
You will use this chart of accounts to complete the continuing problem.
The following problem continues. The balances as of July 31 have been brought forward in the working papers that accompany this text.
a. Set up T accounts in a ledger.
b. Record transactions k through s in the appropriate T accounts.
c. Foot and take the balances of the T accounts where appropriate.
d. Prepare a trial balance at the end of August.
e. Prepare from the trial balance an income statement, statement of owner’s equity, and a balance sheet for the two months ending with August 31, 201X.
- Received the phone bill for the month of July, $155.
- Paid $150 (check #8099) for insurance for the month.
- Paid $200 (check #8100) of the amount due from transaction d in Chapter 1.
- Paid advertising expense for the month, $1,400 (check #8101).
- Billed a client (Jeannine Sparks) for services rendered, $850.
- Collected $900 for services rendered.
- Paid the electric bill in full for the month of July (check #8102, transaction h, Chapter 1).
- Paid cash (check #8103) for $50 in stamps.
- Purchased $200 worth of supplies from Computer Connection on credit.
3. The chart of accounts of Annis’ Delivery Service is as follows: Cash, 111; Accounts Receivable, 112; Ofﬁce Equipment, 121; Delivery Trucks, 122; Accounts Payable, 211; Avery Annis, Capital, 311; Avery Annis, Withdrawals, 312; Delivery Fees Earned, 411; Advertising Expense, 511; Gas Expense, 512; Salaries Expense, 513; and Telephone Expense, 514. Annis’ Delivery Service completed the following transactions during the month of August:
Transaction A: Avery invested $17,000 in the delivery service from her personal savings account.
Transaction B: Bought delivery trucks on account, $11,000.
Transaction C: Bought ofﬁce equipment for cash, $600.
Transaction D: Paid advertising expense, $350.
Transaction E: Collected cash for delivery services rendered, $3,500.
Transaction F: Paid drivers’ salaries, $900.
Transaction G: Paid gas expense for trucks, $1,700.
Transaction H: Performed delivery services for a customer on account, $1,600.
Transaction I: Telephone expense due but unpaid, $600.
Transaction J: Received $400 as partial payment of transaction H.
Transaction K: Avery withdrew cash for personal use, $250.
As Avery’s newly hired accountant, you must perform the following:
a. The T accounts in the ledger have been set up for you. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.)
b. Foot the T accounts where appropriate.
c. Prepare a trial balance at the end of August.
d. Prepare from the trial balance, in proper form, (a) an income statement for the month of August, (b) a statement of owner’s equity, and (c) a balance sheet as of August 31, 201X.
4. From the trial balance of Gail Lucas, Attorney-at-Law (below) prepare
a. An income statement for the month of May
b. A statement of owner’s equity for the month ended May 31, and
c. A balance sheet at May 31, 201X.
Gail Lucas, Attorney-At-Law
May 31, 201X
A. Cash 6,000.00
B. Accounts Receivable 750.00
C. Office Equipment 1,250.00
D. Accounts Payable 6,200.00
E. Sales Payable 770.00
F. G. Lucas, Capital 1,180.00
G. G. Lucas, Withdrawals 800.00
H. Revenue from Legal Fees 1,800.00
I. Utilities Expense 150.00
J. Rent Expense 500.00
K. Salaries Expense 500.00
Totals 9,950.00 9,950.00