Ashworth A01 ASSIGNMENT 4 and 08

ASSIGNMENT 04

A01 Introduction to Accounting

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.

Part A (30 points)

Record the following transactions in the basic accounting equation:

a. Brian invests $10,000 cash to begin an accounting service.

b. The company buys office furniture for cash, $600.

c. The company buys additional office furniture on account, $300.

d. The company makes a payment on the office furniture, $200.

Brian's Accounting Service

ASSETS = LIABILITIES + OWNER'S EQUITY

Cash + Office Furniture = Accounts Payable + Brian's Capital

a.

b.

c.

d.

Part B (40 points)

The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial balance in good form.

Cash $1,370 Benson, Withdrawals $ 500

Accounts Payable 770 Accounts Receivable 1,600

Office Equipment 900 Service Fees 2,730

Benson, Capital 1,500 Salaries Expense 630

Part C (30 points)

The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.

a. Tyler invested $6,500 in the bike service from his personal savings account.

b. Bought office equipment for cash, $900.

c. Performed bike service for a customer on account, $1,000.

d. Company cell phone bill received, but not paid, $80.

e. Collected $500 from customer in transaction c.

f. Tyler withdrew $300 for personal use.

ASSIGNMENT 08

A01 Introduction to Accounting

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.

Part A (20 points)

Prepare in proper form journal entries for the following transactions. Omit explanations.

October

2 Owner made a cash investment into the company $5,000

8 Bought supplies on account $100.

10 Paid salaries, $700

15 Paid for supplies purchased on October 8

21 Received company telephone bill, to be paid later, $30

Part B (5 points each for a possible total of 50 points)

Record the following selected transactions for January in a two-column journal, identifying each entry by letter:

(a) Earned $7,000 fees; customer will pay later.

(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit

(c) Paid $3,000 for rent for January.

(d) Purchased $2,500 of supplies on account.

(e) A. Allen $1,000 investment in the company.

(f) Received $7,000 in cash for fees earned previously.

(g) Paid $1,200 to creditors on account.

(h) Paid wages of $6,250.

(i) Received $7,150 from customers on account.

(j) A. Allen withdrawal of $1,750.

Part C

(1) (10 points) From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31, prepare the closing entries without explanation, assuming that a $1,000 withdrawal was made during the period.

Income Statement

Account Debit Credit

Tutoring Fees 3,450

Wages Expense 700

Rent Expense 600

Supplies Expense 450

Insurance Expense 250 _____

2,000 3,450

Net Income 1,450 _____

$3,450 $3,450

(2) (5 points each for a possible total of 20 points) A summary of selected ledger accounts appear below for S. Ball for the current calendar year.

Answer the following questions.

a. What was the total amount of withdrawals for the year?

b. What was the net income?

c. What was the total revenue?

d. What were the total expenses?