B Week One Exercise Assignment Basic Accounting Equations 1.


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I have an assignment with a lot of help needed. If I am indicating the normal account balance of each item, how do I explain it. For example Amounts paid to mall for rent is an expense, so do I just list it as a debit it on one side and credit it on another? I am going to attach my assignment, because I do not understand any of it, hardly. Maybe you can give me some clarity or help as I have been trying to hire a tutor with no success, it is due tomorrow at midnight. Please help! 5 pages Week_One_Exercise_Assignment_B.docx B Week One Exercise Assignment Basic Accounting Equations 1. Recognition of normal balances The following items appeared in the accounting records of Triguero’s, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; revenue; or expense from the company’s viewpoint. Also indicate the normal account balance of each item. a. b. c. d. e. f. g. h. i. Amounts paid to a mall for rent. Amounts to be paid in 10 days to suppliers. A new fax machine purchased for office use. Land held as an investment. Amounts due from customers. Daily sales of merchandise sold. Promotional costs to publicize a concert. A long-term loan owed to Citizens Bank. The albums, tapes, and CDs held for sale to customers. 2. Basic journal entries The following transactions pertain to the Jennifer Royall Company: May 1 Jennifer Royall invested cash of $25,000 and land valued at $15,000 into the business. 5 Provided $1,000 of services to Jason Ratchford, a client, on account. 9 Paid $1,250 of salaries to an employee. 14 Acquired a new computer for $4,200, on account. 20 Collected $800 from Jason Ratchford for services provided on May 5. 24 Borrowed $2,500 from BestBanc by securing a six-month loan. Prepare journal entries (and explanations) to record the preceding transactions and events. 3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 20XX: Building $24,000 Cash J. Preston, Capital Accounts payable $40,000 21,000 65,000 ? Accounts receivable Loan payable Land Prepare a balance sheet as of December 31, 20XX. (See Exhibit 1.1 and 1.4) 30,000 21,000 B 4. Basic transaction processing. On November 1 of the current year, Richard Simmons established a sole proprietorship. The following transactions occurred during the month: 1: Simmons invested $32,000 into the business for $32,000 in common stock. 2: Paid $5,000 to acquire a used minivan. 3: Purchased $1,800 of office furniture on account. 4: Performed $2,100 of consulting services on account. 5: Paid $300 of repair expenses. 6: Received $800 from clients who were previously billed in item 4. 7: Paid $500 on account to the supplier of office furniture in item 3. 8: Received a $150 electric bill, to be paid next month. 9: Simmons withdrew $800 from the business. 10: Received $250 in cash from clients for consulting services rendered. Instructions a. Arrange the following asset, liability, and owner’s equity elements of the accounting equation: Cash, Accounts Receivable, Office Furniture, Van, Accounts Payable, Common Stock/Dividends, and Revenues/Expenses. (See Exhibit 1.5) b. Record each transaction on a separate line. After all transactions have been recorded, compute the balance in each of the preceding items. c. Answer the following questions for Simmons. (1) How much does the company owe to its creditors at month-end? On which financial statement(s) would this information be found? (2) Did the company have a “good” month from an accounting viewpoint? Briefly explain. 5. Transaction analysis and statement preparation. The transactions that follow relate to Burton Enterprises for March 20X1, the company’s first month of activity. 3/1 3/4 3/7 3/12 3/15 3/18 3/22 3/24 3/28 3/31 Joanne Burton, the owner, invested $20,000 cash into the business. Performed $2,400 of services on account. Acquired a small parcel of land by paying $6,000 cash Received $500 from a client who was

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