ACC107:Week 2 Assignment Worksheet-Part 1. Hot Dawg,Inc. abd Part 2.Big Bunny Inc.

Inc.had the following transactions during December:
Dec.1Purchased$7,500inequipmentonaccount
Dec.5Issued$6,000ofcommonstocktoinvestorsinexchangeforcash
Dec.10Purchased$1,750insuppliesusingcash
Dec.14Billedcustomersfor$40,000forservicesprovided
Dec.16Paidsalariesof$8,000toemployees
Dec.18Paiddividendsof$2,000tostockholders
Dec.21Received$15,000cashinpaymentforservicesearnedandbilledinpreviousmonth
Dec.23Paidcashforpurchasein#1
Dec.28Borrowed$20,000fromthebank
Preparejournalentriesforthetransactionslistedaboveinthejournalbelow;youcanomitexplanations.Enteryour
answersintheshadedboxes.TheDec.1transactionhasbeendoneforyou.

Date
Dec.1

GeneralJournal
AccountNames
Equipment
AccountsPayable

Debit
7,500

Credit
7,500

Dec.5

Dec.10

Dec.14

Dec.16

Dec.18

Dec.21

Dec.23

Dec.28

2012FortisOnline

Part 2.Big Bunny Inc.
Big Bunny,Inc. had the following transactions for June:

June3Issuedcommonstocktoinvestorsfor$40,000
June6Bought$8,700ofsuppliesonaccount
June12PaidrentforJuneintheamountof$2,200incash
June13Billedacustomerfor$12,500forservicesprovided
June15Paidvendor$4,500forJune6purchase
June17Borrowed$35,000fromthebank
June27ReceivedpaymentforbillingmadeonJune13

Preparejournalentries,posttoTAccounts,andprepareatrialbalanceatJune30forBigBunny,Inc.Enteryouranswers
intheshadedboxes.TheentriesforCommonStockhavebeencompletedforyou.
a. JournalEntries

Date
June3

GeneralJournal
AccountNames
Cash
CommonStock

Debit
40,000

Credit
40,000

June6

June12

June13

June15

June17

June27

2012FortisOnline

ACC107:Week2AssignmentWorksheet

Page3

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b. TAccounts

Cash

CommonStock
40,000

Supplies

40,000
RentExpense

AccountsReceivable

ServiceRevenue

NotesPayable

AccountsPayable

2012FortisOnline

c.

TrialBalance

BigBunny,Inc.
TrialBalance
June30
Debit

Credit

Cash
Supplies
AccountsPayable
NotesPayable
CommonStock
ServiceRevenue
RentExpense

40,000

Totals

Part3.DebitsandCredits
Thefollowingisalistofaccountsthatmightbefoundonatrialbalance,alongwiththeirnormalbalances.Aftereach
account,theeffectofadebittotheaccount(increaseordecrease),andtheeffectofacredittotheaccount(increaseor
decrease).Enteryouranswersinthetablebelow.

1.
2.
3.
4.
5.
6.
7.
8.
9.

ACCOUNT
Building
NotePayable
CommonStock
Cash
WagesPayable
UnearnedRevenue
Dividends
Supplies
PrepaidAccounts

NORMALBALANCE
Debit
Credit
Debit
Debit
Credit
Credit
Debit
Credit
Debit

DEBIT

CREDIT

Part4.TheAccountingCycle
Writeabriefparagraphdescribingtheaccountingcycleanditsroleinaccounting.Usethisweekscontent,readings,and
yourLIRNresourcesortheInternet,asneeded,tosupportyouranswer.