Ashford acc 205 week 1 basic accounting equations


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Ashford acc 205 week 1 basic accounting equations

  1. 1. ASHFORD ACC 205 Week 1 Basic Accounting Equations PLEASE DOWNLOAD HEREDue by Day 7. Basic Accounting Equations. Please complete each of theexercises below in a word document. Save the document, and submit it in theappropriate week using the Assignment Submission button.1. Basic concepts. Jeans Marine Supply specializes in the sale of boatingequipment and acces-sories. Identify the items that follow as an asset (A), liability(L), revenue (R), or expense (E) from the firms viewpoint.a. The inventory of boating supplies owned by the company.b. Monthly rental charges paid for store space.c. A loan owed to Citizens Bank.d. New computer equipment purchased to handle daily record keeping.e. Daily sales made to customers.f. Amounts due from customers.g. Land owned by the company to be used as a future store site.h. Weekly salaries paid to salespeople.2. Analysis of transactions.Set up the following headings across a piece of paper:+ Owners EquityBy using "+" and "-," indicate the effect of each of the following transactions ontotal assets, liabilities, and owners equity:a. Processed a $5,000 cash withdrawal for the owner.b. Recorded the receipt of Mays utility bill, to be paid in June.c. Provided services to customers on account.d. Paid the current months advertising charges.
  2. 2. e. Purchased a $27,000 delivery truck by paying $5,000 down and securing aloan for the remaining balance.f. Received $11,000 cash from the owner as an investment in the business.g. Returned a new computer and printer purchased earlier in the month onaccount. The bill had not as yet been paid.h. Paid the utility bill recorded previously in (b).3. Balance sheet preparation.The following data relate to Preston Company as of December 31, 19XX:Building $44,000 Accounts receivable $24,000Cash 17,000 Loan payable 30,000J. Preston, capital 65,000 Land 21,000Accounts payable ?Prepare a balance sheet in good form as of December 31, 19XX.4. Statement preparationThe following information is taken from the accounting records of GrimballCardiology at the close of business on December 31, 19X1: Accounts payable$ 14,700Surgery revenue$175,000Surgical expenses80,000Cash60,000Surgical equipment37,000Office Equipment
  3. 3. 118,000Salaries expense30,000Rent expense15,000Accounts receivable135,000Loan payable10,300Utilities expense5,00019X1 owner withdrawals 22,000Instructionsa. Prepare the income statement for Grimball Cardiology in good form.b. Prepare a statement of owners equity in good form.c. Prepare Grimballs balance sheet in good form.5. Recognition of normal balancesThe following items appeared in the accounting records of Trigueros, a retailmusic store that also sponsors concerts. Classify each of the items as an asset,liability; revenue; or expense from the companys viewpoint. Also indicate thenormal account balance of each item.a. The albums, tapes, and CDs held for sale to customers.b. A long-term loan owed to Citizens Bank.c. Promotional costs to publicize a concert.d. Daily receipts for merchandise sold,e. Amounts due from customers,
  4. 4. f. Land held as an investment,g. A new fax machine purchased for office use.h. Amounts to be paid in 10 days to suppliers,i. Amounts paid to a mall for rent.6. Basic journal entriesThe following transactions pertain to the Jennifer Royall Company: Apr. 1Received cash of $15,000 and land valued at $10,000 fromJennifer Royall as an investment in the business.5Provided $1,200 of services to Jason Ratchford, a client.Ratchford agreed to pay $800 in 15 days and the remaining amount in May.9Paid $250 of salaries to an employee.14Acquired a new computer for $3,200; Royall will pay the dealer in May.20Collected $800 from Jason Ratchford for services provided on April 5.24Borrowed $7,500 from BestBanc by securing a six-month loan.Salariesexpense2,300Advertisingexpense700