ACC 290T Wk 1 – Apply: Homework

ACC 290T Wk 1 – Apply: Homework

ACC 290T Wk 1 – Apply: Homework

Study Attempt
1. It’s highly recommended that you use your first attempt as a study
attempt, if needed.
True or False
2. QS 1-8 Applying the accounting equation LO A1
1. Use the accounting equation to compute the missing financial statement amounts.
Company Assets = Liabilities + Equity

2. Use the expanded accounting equation to compute the missing financial statement amounts.
Company Assets = Liabilities + Owner, Capital − Owner, Withdrawals + Revenues − Expenses

3. Exercise 1-8 Using the accounting equation LO A1
Determine the missing amount from each of the separate situations given below.
Assets = Liabilities + Equity

Required information
Exercise 1-9 Using the accounting equation LO A1
[The following information applies to the questions displayed below.]
Answer the following questions. Hint: Use the accounting equation.

4. Exercise 1-9 Part a
a. At the beginning of the year, Addison Company’s assets are $299,000 and its equity is $224,250. During the year,
assets increase $80,000 and liabilities increase $54,000. What is the equity at year-end?
Assets = Liabilities + Equity

5. Exercise 1-9 Part b
b. Office Store has assets equal to $233,000 and liabilities equal to $194,000 at year-end. What is the equity for Office
Store at year-end?

Assets = Liabilities + Equity

6. Exercise 1-9 Part c
c. At the beginning of the year, Quaker Company’s liabilities equal $46,000. During the year, assets increase by
$60,000, and at year-end assets equal $190,000. Liabilities decrease $17,000 during the year. What are the beginning
and ending amounts of equity?
Assets = Liabilities + Equity

7. QS 1-10 Identifying effects of transactions using accounting equation-Revenues and Expenses
LO P1
The following transactions were completed by the company.
a. The company completed consulting work for a client and immediately collected $6,000 cash earned.
b. The company completed commission work for a client and sent a bill for $4,500 to be received within 30 days.
c. The company paid an assistant $1,650 cash as wages for the period.
d. The company collected $2,250 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $800 cash for this period’s cleaning services.

Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account
balances with a minus sign.)
Assets = Liabilities + Equity
Cash +
Accounts
Receivable =
Accounts
Payable +
Owner,
Capital −
Owner,
Withdrawals + Revenue − Expenses

8. QS 1-11 Identifying effects of transactions using accounting equation-Assets and Liabilities LO
P1
The following transactions were completed by the company.
a. The owner (Alex Carr) invested $18,200 cash in the company.
b. The company purchased supplies for $1,300 cash.
c. The owner (Alex Carr) invested $11,600 of equipment in the company.
d. The company purchased $360 of additional supplies on credit.
e. The company purchased land for $10,600 cash.
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account
balances with a minus sign.)

Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,160 in assets to
launch the business. On October 31, the company’s records show the following items and amounts.

9. Exercise 1-15 Preparing an income statement LO P2
Using the above information prepare an October income statement for the business.
ERNST CONSULTING

 

10. Exercise 1-16 Preparing a statement of owner’s equity LO P2
Using the above information prepare an October statement of owner’s equity for Ernst Consulting.
ERNST CONSULTING

11. Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst Consulting.
ERNST CONSULTING

12. Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner’s initial investment consists of $39,160 cash and $46,000 in land.
b. The company’s $19,190 equipment purchase is paid in cash.
c. The accounts payable balance of $9,600 consists of the $4,310 office supplies purchase and $5,290 in employee
salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $15,160 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows
should be indicated by a minus sign.)
ERNST CONSULTING

ACC 290T Wk 1 – Apply: Homework

ACC 290T Wk 1 – Apply: Homework

 

OR 

ACC 290T Wk 1 – Apply: Homework

ACC 290T Wk 1 – Apply: Homework

Study Attempt
1. It’s highly recommended that you use your first attempt as a study
attempt, if needed.
True or False
2. QS 1-8 Applying the accounting equation LO A1
1. Use the accounting equation to compute the missing financial statement amounts.
Company Assets = Liabilities + Equity

2. Use the expanded accounting equation to compute the missing financial statement amounts.
Company Assets = Liabilities + Owner, Capital − Owner, Withdrawals + Revenues − Expenses

3. Exercise 1-8 Using the accounting equation LO A1
Determine the missing amount from each of the separate situations given below.
Assets = Liabilities + Equity

Required information
Exercise 1-9 Using the accounting equation LO A1
[The following information applies to the questions displayed below.]
Answer the following questions. Hint: Use the accounting equation.

4. Exercise 1-9 Part a
a. At the beginning of the year, Addison Company’s assets are $299,000 and its equity is $224,250. During the year,
assets increase $80,000 and liabilities increase $54,000. What is the equity at year-end?
Assets = Liabilities + Equity

5. Exercise 1-9 Part b
b. Office Store has assets equal to $233,000 and liabilities equal to $194,000 at year-end. What is the equity for Office
Store at year-end?

Assets = Liabilities + Equity

6. Exercise 1-9 Part c
c. At the beginning of the year, Quaker Company’s liabilities equal $46,000. During the year, assets increase by
$60,000, and at year-end assets equal $190,000. Liabilities decrease $17,000 during the year. What are the beginning
and ending amounts of equity?
Assets = Liabilities + Equity

7. QS 1-10 Identifying effects of transactions using accounting equation-Revenues and Expenses
LO P1
The following transactions were completed by the company.
a. The company completed consulting work for a client and immediately collected $6,000 cash earned.
b. The company completed commission work for a client and sent a bill for $4,500 to be received within 30 days.
c. The company paid an assistant $1,650 cash as wages for the period.
d. The company collected $2,250 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $800 cash for this period’s cleaning services.

Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account
balances with a minus sign.)
Assets = Liabilities + Equity
Cash +
Accounts
Receivable =
Accounts
Payable +
Owner,
Capital −
Owner,
Withdrawals + Revenue − Expenses

8. QS 1-11 Identifying effects of transactions using accounting equation-Assets and Liabilities LO
P1
The following transactions were completed by the company.
a. The owner (Alex Carr) invested $18,200 cash in the company.
b. The company purchased supplies for $1,300 cash.
c. The owner (Alex Carr) invested $11,600 of equipment in the company.
d. The company purchased $360 of additional supplies on credit.
e. The company purchased land for $10,600 cash.
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account
balances with a minus sign.)

Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,160 in assets to
launch the business. On October 31, the company’s records show the following items and amounts.

9. Exercise 1-15 Preparing an income statement LO P2
Using the above information prepare an October income statement for the business.
ERNST CONSULTING

 

10. Exercise 1-16 Preparing a statement of owner’s equity LO P2
Using the above information prepare an October statement of owner’s equity for Ernst Consulting.
ERNST CONSULTING

11. Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst Consulting.
ERNST CONSULTING

12. Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner’s initial investment consists of $39,160 cash and $46,000 in land.
b. The company’s $19,190 equipment purchase is paid in cash.
c. The accounts payable balance of $9,600 consists of the $4,310 office supplies purchase and $5,290 in employee
salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $15,160 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows
should be indicated by a minus sign.)
ERNST CONSULTING

ACC 290T Wk 1 – Apply: Homework

ACC 290T Wk 1 – Apply: Homework

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