Scribd Logo
Upload

Welcome to Scribd!

  • 6K views

    Homework 1

    Uploaded by

    johnny
    1. Trixie Maye started a consulting firm called Matrix Consulting on May 1, 2017. 2. During May, Trixie invested $7,000 cash, paid $900 rent, and purchased $600 of supplies on account. 3. Additional transactions included paying $125 for advertising, receiving $4,000 for services, and paying $2,500 in salaries.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Homework 1

    Uploaded by

    johnny
    6K views3 pages
    1. Trixie Maye started a consulting firm called Matrix Consulting on May 1, 2017. 2. During May, Trixie invested $7,000 cash, paid $900 rent, and purchased $600 of supplies on account. 3. Additional transactions included paying $125 for advertising, receiving $4,000 for services, and paying $2,500 in salaries.

    Original Title

    homework1 - Copy.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Trixie Maye started a consulting firm called Matrix Consulting on May 1, 2017. 2. During May, Trixie invested $7,000 cash, paid $900 rent, and purchased $600 of supplies on account. 3. Additional transactions included paying $125 for advertising, receiving $4,000 for services, and paying $2,500 in salaries.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6K views3 pages

    Homework 1

    Uploaded by

    johnny
    1. Trixie Maye started a consulting firm called Matrix Consulting on May 1, 2017. 2. During May, Trixie invested $7,000 cash, paid $900 rent, and purchased $600 of supplies on account. 3. Additional transactions included paying $125 for advertising, receiving $4,000 for services, and paying $2,500 in salaries.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Accounting Principles

    ID: 3914isb1003
    Date: October, 7, 2016
    Name: Pham Khanh Huy

    Chapter 1
    E1-6: Selected transactions for Green Valley Lawn Care Company are listed below.
    1. Made cash investment to start business.
    2. Paid monthly rent.
    3. Purchased equipment on account.
    4. Billed customers for services performed.
    5. Withdrew cash for owner’s personal use.
    6. Received cash from customers billed in (4).
    7. Incurred advertising expense on account.
    8. Purchased additional equipment for cash.
    9. Received cash from customers when service was performed.
    Answers:

    Owner’s
    Transaction Description Assets Liabilities Effect
    Equity
    Made cash
    investment to start Increase
    1 Increase Investment
    business.

    Paid monthly rent. Decrease


    2 Decrease Expense
    Purchased equipment
    Type of
    3 on account. Increase Increase
    loan
    Billed customers for
    4 services performed. Increase Increase Revenue

    Withdrew cash for


    5 owner’s personal use. Decrease Decrease Drawing

    Received cash from


    Asset
    customers billed in
    6 Increase composition
    (4).
    change
    Incurred advertising
    7 expense on account. Increase Decrease Expense

    Purchased additional Asset


    8 equipment for cash. Increase composition
    change
    Received cash from
    customers when
    9 service was increase Increase Revenue
    performed.

    E1-7: Falske Computer Timeshare Company entered into the following transaction during May
    2017:
    1. Purchased computers for $20,000 from Digital Equipment on account.
    2. Paid $4,000 cash for May rent on storage space.
    3. Received $17,000 cash from customers for contracts billed in April.
    4. Performed computer services for Viking Construction Company for $4,000 cash.
    5. Paid Tri-State Power Co. $11,000 cash for energy usage in May.
    6. Falske invested an additional $29,000 in the business.
    7. Paid Digital Equipment for the computers purchased in (1) above.
    8. Incurred advertising expense for May of $1,200 on account.
    Answers:

    Transaction Description Consequence

    Purchased computers for


    $20,000 from Digital Equipment (c) An increase in assets and an increase
    1
    on account. in liabilities

    Paid $4,000 cash for May rent


    (d) A decrease in assets and a decrease in
    2 on storage space.
    owner’s equity

    Received $17,000 cash from


    customers for contracts billed in (a) An increase in assets and a decrease
    3
    April. in assets
    Performed computer services
    for Viking Construction (b) An increase in assets and an increase
    4
    Company for $4,000 cash. in owner’s equity.

    Paid Tri-State Power Co.


    $11,000 cash for energy usage (d) A decrease in assets and a decrease in
    5
    in May. owner’s equity

    Falske invested an additional


    (b) An increase in assets and an increase
    6 $29,000 in the business.
    in owner’s equity.

    Paid Digital Equipment for the


    computers purchased in (1) (e) A decrease in assets and a decrease in
    7
    above. owner’s equity.

    Incurred advertising expense for


    (f) An increase in owner’s equity and a
    8 May of $1,200 on account.
    decrease in liabilities.

    P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. The
    following transaction occurred during the month of May:
    1 Trixie invested $7,000 cash in the business
    2 Paid $900 for office rent for the month
    3 Purchased $600 of supplies on account
    4 Paid $125 to advertise in the country news
    5 Received $4,000 cash for services on account
    6 Paid $2,500 for employee salaries
    7 Paid for the supplies purchased on account on may 3
    8 Received a cash payment of $4,000 for services performed on account on may 15
    9 Borrowed $5,000 from the bank on a note payable
    10 Purchased equipment for $4,200 on account
    11 Paid $275 for utilities
    Answers:

    You might also like