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Problems To Be Completed Manually

The document contains information about transactions for two businesses - Barone's Repair Shop and Vinnie's Travel Agency. It provides details of cash flows, expenses, and revenues for the starting month of operations for each business. The problems ask the student to analyze the transactions and prepare journal entries and T-accounts to show the impact on the accounting equation for assets, liabilities, and owner's equity.

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sk3 khan
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135 views

Problems To Be Completed Manually

The document contains information about transactions for two businesses - Barone's Repair Shop and Vinnie's Travel Agency. It provides details of cash flows, expenses, and revenues for the starting month of operations for each business. The problems ask the student to analyze the transactions and prepare journal entries and T-accounts to show the impact on the accounting equation for assets, liabilities, and owner's equity.

Uploaded by

sk3 khan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: Coll Acc101 Ch 1

Problem 1-1A: Barone's Repair Shop was started on May 1 by Nancy Barone. A summary of May transactions is
presented below.

1. Invested $10,000 cash to start the repair shop.


2. Purchased office equipment for $5,000 cash.
3. Paid $400 cash for May office rent.
4. Paid $500 cash for supplies.
5. Incurred $250 of advertising costs in the Beacon News on account.
6. Received $5,100 cash from customers for repair service.
7. Withdrew $1,000 cash for personal use.
8. Paid part-time employee salaries $2,000.
9. Paid utility bills $140.
10. Provided repair service on account to customers $750.
11. Collected cash of $120 for services billed in transaction (10).

Instructions: Complete the attached table. (If amount is a decrease, use either a negative sign preceding the
number eg -45 or parentheses eg (45). If answer is zero, please enter 0. Do not leave any fields blank. Note:
Drawings and Expenses always decrease the account.)

Problem 1-1B: On April 1, Vinnie Venuchi established Vinnie’s Travel Agency. The following transactions were
completed during the month:

1. Invested $15,000 cash to start the agency


2. Paid $600 cash for April office rent
3. Purchased office equipment for $3,000 cash
4. Incurred $700 of advertising costs, on account
5. Paid $800 cash for office supplies
6. Earned $11,000 for services rendered: $3,000 is cash received from customers and the balance of $8,000
is billed to customers on account
7. Withdrew $500 cash for personal use
8. Paid the amount due in transaction #4
9. Paid employees’ salaries $2,200
10. Received $4,000 cash from customers who have previously been billed in transaction #6

Instructions: Complete the attached table. (If amount is a decrease, use either a negative sign preceding the
number eg -45 or parentheses eg (45). If answer is zero, please enter 0. Do not leave any fields blank. Note:
Drawings and Expenses always decrease the account.)

Problem 1-2A: Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31,
the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000,
Accounts Payable $3,600, and M. Gonzalez, Capital $13,700. During September the following transactions
occurred.

1. Paid $2,900 cash on accounts payable.


2. Collected $1,300 of accounts receivable.
3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4. Earned revenue of $8,000 of which $2,500 is collected in cash and the balance is due in October.
5. Withdrew $1,000 in cash for personal use.
6. Paid salaries $1,700, rent for September $900, and advertising expenses $300.
7. Incurred utility expenses for month on account $170.
8. Received $10,000 from Capital Money Bank - money borrowed on a note payable.
Name: Coll Acc101 Ch 1

Instructions: Complete the table. (If amount is a decrease, use either a negative sign preceding the number eg -
45 or parentheses eg (45). For item 6. list amounts from largest to smallest eg 10, 5, 3, 2. If answer is zero,
please enter 0. All blanks must be filled in. Note: Drawings and Expenses always decrease the account.)

Problem 1-4A: Mark Miller started his own delivery service, Miller Deliveries, on June 1, 2010. The following
transactions occurred during the month of June.

June 1 Mark invested $10,000 cash in the business.


Purchased a used van for deliveries for $12,000. Mark paid $2,000 cash and signed a note payable
2
for the remaining balance.
3 Paid $500 for office rent for the month.
5 Performed $4,400 of services on account.
9 Withdraw $200 cash for personal use.
12 Purchased supplies for $150 on account
15 Received a cash payment of $1,250 for services provided on June 5.
17 Purchased gasoline for $100 on account.
20 Received a cash payment of $1,500 for services provided.
23 Made a cash payment of $500 on the note payable.
26 Paid $250 for utilities
29 Paid for the gasoline purchased on account on June 17.
30 Paid $1,000 for employee salaries.

Instructions: Complete the table below. (If amount is a decrease, use either a negative sign preceding the
number eg -45 or parentheses eg (45). If answer is zero, please enter 0. Do not leave any fields blank. Note:
Drawings and Expenses always decrease the account.)

Problem 1-4B: Michelle Rodriguez started her own consulting firm, Rodriguez consulting, on May 1, 2010. The
following transactions occurred during the month of May.

May 1 Michelle invested $7,000 in the business


2 Paid $900 for office rent for the month
3 Purchased $600 of supplies on account
5 Paid $125 to advertise in the County News
9 Received $4,000 cash for services provided
12 Withdrew $1,000 cash for personal use
15 Performed $6,400 of services on account
17 Paid $2,500 for employee salaries
20 Paid for the supplies purchased on account on May 3
23 Received cash payment of $4,000 for services provided on account on May 15
26 Borrowed $5,000 from the bank on a note payable
29 Purchased office equipment for $3,100 on account
30 Paid $175 for utilities

Instructions: Show the effects of the previous transactions on the accounting equation using the attached table.

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