ACCT 550 Intermediate Accounting Week 1 Homework
E3-1 (Transaction Analysis—Service Company) Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.
|April||2||Invested $30,000 cash and equipment valued at $14,000 in the business.|
|2||Hired a secretary-receptionist at a salary of $290 per week payable monthly.|
|3||Purchased supplies on account $700. (debit an asset account.)|
|7||Paid office rent of $600 for the month.|
|11||Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.)|
|12||Received $3,200 advance on a management consulting engagement.|
|17||Received cash of $2,300 for services completed for Ferengi Co.|
|21||Paid insurance expense $110.|
|30||Paid secretary-receptionist $1,160 for the month.|
|30||A count of supplies indicated that $120 of supplies had been used.|
|30||Purchased a new computer for $5,100 with personal funds. (The computer will be used exclusively for business purposes.)|
E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
|Prepaid Insurance||$ 3,600|
|Accumulated Depreciation—Equipment||$ 8,400|
|Unearned Rent Revenue||6,300|
|Salaries and Wages Expense||14,000|
An analysis of the accounts shows the following.
- The equipment depreciates $250 per month.
- One-third of the unearned rent was earned during the quarter.
- Interest of $500 is accrued on the notes payable.
- Supplies on hand total $650.
- Insurance expires at the rate of $300 per month.
most directly related to measuring the performance and financial status of an enterprise are provided below.
|Assets||Distributions to owners||Expenses|
|Investments by owners|
Identify the element or elements associated with the 12 items below.
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.
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