Question & Answer: Fall 2017 ACCT 300 Intermediate Accounting 1 Homework #1 Brittney is a licensed CPA. During the first month of operations of her busines…..

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Fall 2017 ACCT 300 Intermediate Accounting 1 Homework #1 Brittney is a licensed CPA. During the first month of operations of her business (a ole proprietorship), the following transactions occurred. eptember 1. Invested $30,000 cash in the business and equipment valued at $10,000 in the business 2. Purchased supplies on account for $2,000 3. Paid office rent of $1,200 for a year 5. Completed audit of financial statements and invoiced a client $4,000 10. Received $1,500 as advance payment for a tax consulting assignment 11. Donated $700 of business cash towards hurricane Harvey victims as a part of business social responsibility 15. Paid utilities $250 16. Completed a tax consulting assignment for which money had been received on September 10. 17. Purchased supplies $800 cash 20. Paid insurance for the month $600 22. Received $2,500 from clients who had received services but not paid 24. Paid creditors who had supplied on account $1,200 25. Performed services to clients who immediately paid cash of $4,800 26. Paid administrative assistant $1,800 wage for the month 28. Bought a computer for the business for $2,000 using personal funds 29. Purchased a vehicle $6,000 for the business. Did not pay cash but issued a note

Expert Answer

Transactions of the month should be recorded first in Journal. It is shown below:

Journal entries

Date	Dfetails and accounts head	Debit	Credit
1-Sep	Cash………………………..	30,000
	Equipment…………..	10,000
	Capital…………….		40,000
	[Introduced cash and equipment in the
	business]
2-Sep	Supplies………………………..	2,000
	Account recivable………		2,000
	[bought supplies on credit]
3-Sep	Rent………………….	1,200
	Cash………………….		1,200
	[Rent paid for the month]
5-Sep	Account receivable—-	4,000
	Audit service revenue……		4,000
	[Completed audit and raised bill]
10-Sep	Cash ……………………….	1,500
	Advance receipt…………….		1,500
	[ Received for audit service in advance]
11-Sep	Donation………………………..	700
	Cash………………………..		700
15-Sep	Utilities……………………	250
	cash………………………		250
	[paiod utilities]
16-Sep	Advance receipt………………….	1,500
	Service revenue……………….		1,500
	[Audit against advance receipt now
	completed]
17-Sep	Supplies………………………	800
	Cash…………………………..		800
	[ purchased supplies in cash]
20-Sep	Insurance…………………….	600
	Cash……………………..		600
	[paid insurance]
22-Sep	Cash………………………..	2,500
	Accounts receivable……….		2,500
	{received cash]
24-Sep	Accounts payable…………………	1,200
	cash……………………….		1,200
	{paid to suppliers]
25-Sep	Cash…………………………….	4,800
	Service revenue…………………		4,800
	[received cash for service rendered]
26-Sep	Wages……………..	1,800
	Cash……………………..		1,800
	[paid wages]
28-Sep	Computer…………………	2,000
	Capital…………		2,000
	[Purchased computer for business from
	personal cash]
29-Sep	Vehicla ………………………	6,000
	Notes payable………………..		6,000
	[Purchased vehicle and note issued]
30-Sep	Cost of goods sold……………….	700
	Supplies………………		700
	[Consumed supplies]
30-Sep	Capital……………………….	4,500
	Cash……………………….		4,500
	[Withdrawal of fund invested]
30-Sep	Office expenses……………………..	200
	Cash………………………..		200
	[Expenses paid]

————————————————————–

Posting in the ledger accounts are shown below-

		Cash account

1-Sep	Capital	40,000	3-Sep	Rent	1,200
10-Sep	Advance receipt	1,500	11-Sep	Donation	700
22-Sep	Accounts recivable	2500	15-Sep	Utilities	250
25-Sep	Service revenue	4,800	17-Sep	Supplies	800
			20-Sep	Insurance	600
			24-Sep	Accounts payable	1200
			26-Sep	Wages	1,800
			30-Sep	Drawing	4,500
			30-Sep	Office expenses	200
			30-Sep	Balance c/d	37,550
		48,800			48,800

Equipment
1-Sep	Capital	10,000		Balance c/d	10,000
		10,000			10,000
1-Oct	Balance b/d	10,000







Capital account
30-Sep	Cash	4,500	1-Sep	Cash	30,000
30-Sep	Balance c/d	37,500		Equipment	10,000
				Computer	2,000
		42,000			42,000
			1-Oct	Balance b/d	37,500





Supplies
2-Sep	Accounts receivable	2,000	30-Sep	COGS	700
17-Sep	Cash	800	30-Sep	Balance c/d	2,100
		2,800			2,800
1-Oct	Balance b/d	2,800






Accounts receivable
5-Sep	Service revenue	4,000	2-Sep	Supplies	2,000
30-Sep	Balance c/d	500	22-Sep	Cash	2,500
		4,500			4,500
				Balance b/d	500






3-Sep	Cash	1,200	30-Sep	Balance c/d	1,200
		1,200			1,200
1-Oct	Balance b/d	1,200







Wages
26-Sep	Cash	1,800	30-Sep	Balance c/d	1,800
		1,800			1,800
1-Oct	Balance b/d	1,800







Vehicles account
29-Sep	Notes payable	6,000	30-Sep	Balance c/d	6,000
		6,000			6,000
1-Oct	Balance b/d	6,000







COGS account
30-Sep	Supplies	700	30-Sep	Balance c/d	700
		700			700
1-Oct	Balance b/d	700


Service revenue account
			5-Sep	Accounts recivable	4,000
30-Sep	Balance c/d	10,300	16-Sep	Advance receipt	1,500
			25-Sep	Cash	4,800
		10,300			10,300
			1-Oct	Balance b/d	10,300





		Advance receipt
16-Sep	Service revenue	1,500	10-Sep	Cash	1,500
		1,500			1,500








		Donation account
11-Sep	Cash	700		Balance c/d	700
		700			700
1-Oct	Balance b/d	700







		Utilities
15-Sep	Cash	250	30-Sep	Balance c/d	250
		250			250
1-Oct	Balance b/d	250







		Insurance
20-Sep	Cash	600	30-Sep	Balance c/d	600
		600			600
1-Oct	Balance b/d	600







		Accounts payable
24-Sep	Cash	1,200	30-Sep	Balance c/d	1,200
		1,200			1,200
1-Oct	Balance b/d	1,200







Computer
28-Sep	Capital	2,000	30-Sep	Balance c/d	2,000
		2,000			2,000
1-Oct	Balance b/d	2,000







Notes payable
30-Sep	Balance c/d	6,000	29-Sep	Vehicle	6,000
		6,000			6,000
			1-Oct	Balance b/d	6,000







Office expenses
30-Sep	Cash	200	30-Sep	Balance c/d	200
		200			200
1-Oct	Balance b/d	200

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