Question

ASSIGNMENT 08 A01 Introduction to Accounting Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College 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. i) A. Allen withdrawal of $1,750. Part C points) From the following items in the income statement columns of the worksheet of Tutoring at December 31, prepare the closing entries without explanation, assuming (1) (10 that a $1,000 withdrawal was made during the period. Credit 3,450 Debit Tutoring Fees Wages Expense Rent Expense 700 600 450 Supplies Expense Insurance Expense 250 2,000 1450 53,450 3,450 Net Income $3,450 (2) (S points each for a possible total of 20 points) A summary of selected ledger accounts below for S. Ball for the current calendar year. appear S Ball, Withdrawals S. Ball, Capital 1231 6,500 11 27,000 12/31 4,250 3/31 2.000 12/31 6,000 10/31 3,000 12/22 1,000 Income Summary 12/31 12,750 12/31 17,000 12/31 4,250 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?

Answer 1

Part A :

Date	General Journal	Debit	Credit
October		$	$
2	Cash	5,000
	Owner's Equity		5,000
8	Supplies	100
	Accounts Payable		100
10	Salaries Expense	700
	Cash		700
15	Accounts Payable	100
	Cash		100
21	Telephone Expense	30
	Accounts Payable		30

Part B :

Transaction	General Journal	Debit	Credit
		$	$
a.	Accounts Receivable	7,000
	Fees Earned		7,000
b.	Equipment	45,000
	Cash		20,000
	Accounts Payable		25,000
c.	Rent Expense	3,000
	Cash		3,000
d.	Supplies	2,500
	Accounts Payable		2,500
e.	Cash	1,000
	A. Allen, Capital		1,000
f.	Cash	7,000
	Accounts Receivable		7,000
g.	Accounts Payable	1,200
	Cash		1,200
h.	Wages Expense	6,250
	Cash		6,250
i.	Cash	7,150
	Accounts Receivable		7,150
j.	A. Allen, Withdrawals	1,750
	Cash		1,750

Part C :

1. In the books of Friend's Tutoring :

Date	Account Titles	Debit	Credit
December 31		$	$
a.	Tutoring Fees	3,450
	Income Summary		3,450
b.	Income Summary	2,000
	Wages Expense		700
	Rent Expense		600
	Supplies Expense		450
	Insurance Expense		250
c.	Income Summary	1,450
	Capital		1,450
d.	Capital	1,000
	Withdrawals		1,000

2. a. $ 6,000

b. $ 4,250

c. $ 17,000

d. $ 12,750