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Principles of Accounting Assignment 1

Company A was incorporated on January 1, 20X0 with an initial capital of 5,000 shares of common stock having $20 par value. During its first month of operations in January, the company engaged in multiple business transactions including paying advance rent, purchasing equipment partially with cash and financing the remainder, providing and receiving payment for services to customers, purchasing and paying for office supplies and paying wages to employees. At the end of the month, the company also paid dividends, received utility bills, and paid miscellaneous expenses.

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1K views

Principles of Accounting Assignment 1

Company A was incorporated on January 1, 20X0 with an initial capital of 5,000 shares of common stock having $20 par value. During its first month of operations in January, the company engaged in multiple business transactions including paying advance rent, purchasing equipment partially with cash and financing the remainder, providing and receiving payment for services to customers, purchasing and paying for office supplies and paying wages to employees. At the end of the month, the company also paid dividends, received utility bills, and paid miscellaneous expenses.

Uploaded by

amir azam
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Principles of Accounting

ASSIGNMENT 1

Question 1

Company A was incorporated on January 1, 20X0 with an initial capital of 5,000 shares of
common stock having $20 par value. During the first month of its operations, the company
engaged in the following transactions:

Date Transaction
Jan 2 An amount of $36,000 was paid as advance rent for three months.
Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining
Jan 3
amount was recognized as a one year note payable with an interest rate of 9%.
Jan 4 Purchased office supplies costing $17,600 on account.
Jan
Provided services to its customers and received $28,500 in cash.
13
Jan
Paid the accounts payable on the office supplies purchased on January 4.
13
Jan
Paid wages to its employees for the first two weeks of January, aggregating $19,100.
14
Jan Provided $54,100 worth of services to its customers. They paid $32,900 and promised
18 to pay the remaining amount.
Jan
Received $15,300 from customers for the services provided on January 18.
23
Jan
Received $4,000 as an advance payment from customers.
25
Jan
Purchased office supplies costing $5,200 on account.
26
Jan
Paid wages to its employees for the third and fourth week of January: $19,100.
28
Jan
Paid $5,000 as dividends.
31
Jan
Received an electricity bill of $2,470.
31
Jan
Received a telephone bill of $1,494.
31
Jan
Miscellaneous expenses paid during the month totaled $3,470
31

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