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…..

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

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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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