Scribd
Upload
47 views2 pages

Transactions Excercise

Programming in Ansi C, 8th Edition

Uploaded by

jeffreybriere2k22
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
47 views2 pages

Transactions Excercise

Programming in Ansi C, 8th Edition

Uploaded by

jeffreybriere2k22
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Problem 01: Joan Robinson opens her own law offi ce on July 1, 2020.

During the fi rst month of


operations, the following transactions occurred.
1. Joan invested $11,000 in cash in the law practice.
2. Paid $800 for July rent on office space.
3. Purchased equipment on account $3,000.
4. Performed legal services for clients for cash $1,500.
5. Borrowed $700 cash from a bank on a note payable.
6. Performed legal services for client on account $2,000.
7. Paid monthly expenses: salaries and wages $500, utilities $300, and advertising $100.
8. Joan withdrew $1,000 cash for personal use.
Instructions: Prepare a tabular summary of the transactions.

Problem 02: On April 1, Julie Spengel established Spengel’s Travel Agency. The following
transactions were completed during the month.
1. Invested $15,000 cash to start the agency.
2. Paid $600 cash for April office rent.
3. Purchased equipment for $3,000 cash.
4. Incurred $700 of advertising costs in the Chicago Tribune, on account.
5. Paid $900 cash for office supplies.
6. Performed services worth $10,000: $3,000 cash is received from customers, and the balance of
$7,000 is billed to customers on account.
7. Withdrew $600 cash for personal use.
8. Paid Chicago Tribune $500 of the amount due in transaction (4).
9. Paid employees’ salaries $2,500.
10. Received $4,000 in cash from customers who have previously been billed in transaction (6).
Instructions: Prepare a tabular analysis of the transactions using the following column headings:
Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Owner’s Capital, Owner’s
Drawings, Revenues, and Expenses.

Problem 03: Sonya Jared opened a law office on July 1, 2020. On July 31, the balance sheet showed
Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable
$4,200, and Owner’s Capital $8,800. During August, the following transactions occurred.
1. Collected $1,200 of accounts receivable.
2. Paid $2,800 cash on accounts payable.
3. Recognized revenue of $7,500 of which $4,000 is collected in cash and the balance is due in
September.
4. Purchased additional equipment for $2,000, paying $400 in cash and the balance on account.
5. Paid salaries $2,800, rent for August $900, and advertising expenses $400.
6. Withdrew $700 in cash for personal use.
7. Received $2,000 from Standard Federal Bank—money borrowed on a note payable.
8. Incurred utility expenses for month on account $270.
Instructions: Prepare a tabular analysis of the August transactions beginning with July 31 balances.
The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment =
Notes Payable + Accounts Payable + Owner’s Capital – Owner’s Drawings + Revenues – Expenses.

Problem 04: Maisie Taft started her own consulting firm, Maisie Consulting, on May 1, 2020. The
following transactions occurred during the month of May.
May 1 Maisie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $800 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $6,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Made a partial payment of $600 for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities.
Instructions: Show the effects of the previous transactions on the accounting equation.

You might also like