Question

Record the following transactions using the below accounting equation. The first one has been completed for you as an example. Make sure to indicate the specific account name and use a + or – sign to indicate if the over

Record the following transactions using the below accounting equation. The first one has been completed for you as an example. Make sure to indicate the specific account name and use a + or – sign to indicate if the overall category is being increased or decreased. Items that effect net income should only be shown in the net income column and not in stockholders’ equity.

After recording all transactions, calculate total assets, total liabilities, stockholders’ equity, revenues and expense. Prove your accounting equation is in balance.

1. Common Stock of $5,000 was sold for cash.
2. A company paid $100 to car servicing store for an oil change and regular maintenance for a corporate owned automobile. Make the entry to record this.
3. Make the entry to record $1500 of depreciation on company owned laptops.
4. Make the entry to record the purchase of equipment for $2,000 along with $200 for installation.
5. Sold land that had originally cost $100,000 for $115,000 in cash.
6. For the payroll period ended on October 19, 2018, gross pay was $22,300, net pay was $17,000, FICA tax withholdings were $1,500, income tax withholdings were $3,000, and medical insurance contributions were $800. Prepare the entry below to show the effects of the payroll accrual on October 19, 2018.  
7. The Defiance College sells season tickets for four home football games at a price of $60. For the 2018 season, 5,000 season tickets were sold.
   (a.) Record the journal entry below to show the effect of the sale of the season tickets.
   (b.) Record the journal entry to show the effect of hosting a home football game

Trans.	Assets	=	Liabilities	+SE	<-	NI
1.	Cash 5,000			Common Stock+5,000
2.

Answer 1

= Liabilities + <- NI Trans. Assets 1 Cash 5,000 SE Common Stock+5,000 2 Cash - 100 Repair expense - 100 Accum. Depr +1,500 Depr. Expense - 1,500 4 Equipment +2,200 Accounts payable +2,200 Assumed to be purchased on credit. Installation fee is capitalized with the cost of equipment. 5 Cash +115,000 Profit on disposal +15,000 Profit on disposal = 115000-100000=15000 Land -100,000 6 Cash -17,000 Salary expense - 17,000 Employee FICA tax expense -1,500 FICA tax withholdings +1,500 Employee income tax withholdings +3,000 Employee income tax expense -3,000 Employee medical insurance contributions +800 Employee medical insurance expense - 800 7 Cash +300,000 sales = 5000 X 60 = 300000. Assuming the tickets are sold on cash. Sales revenue +300,000 Net Income <- Net Income +291,100 291100 296,100 Total 305,100/= 9,000+ Total assets Total liabilities Stockholders' equity Revenues Expense $ $ $ 1 305,100 9,000 296,100 315,000 23,900 (300000+15000) (100+1500+17000+1500+3000+800) The equation is balance as Total asset($305,100) - Total liabilties (9,000) + Stockholders' equity ($296,100) =Liabilities + SE Trans. Assets Cash +300,000 NI Sales revenue +300,000 sales = 5000 X 60 = 300000. Assuming the tickets are sold on cash. No entry required as hosting is not particularily ralated to transaction. Please give likes for the work. Thanks