Home » Accounting Assignment Help » Online Exam Help » Connect Financial Accounting Chapter 2

Connect Financial Accounting Chapter 2

Q1. Following are the transactions of a new company called Pose-for-Pics.

• Aug 1 – Madison Harris, the owner, invested $12,500 cash and $53,750 of photography equipment in the company in exchange for common stock.
• Aug 2 – The company paid $3,700 cash for an insurance policy covering the next 24 months.
• Aug 5 – The company purchased office supplies for $2,375 cash.
• Aug 20 – The company received $2,650 cash in photography fees earned.
• Aug 31 – The company paid $883 cash for August utilities.

Prepare general journal entries for the above transactions.

Q2. The transactions of Spade Company appear below.

• Kacy Spade, owner, invested $20,000 cash in the company in exchange for common stock.
• The company purchased office supplies for $580 cash.
• The company purchased $11,060 of office equipment on credit.
• The company received $2,360 cash as fees for services provided to a customer.
• The company paid $11,060 cash to settle the payable for the office equipment purchased in transaction c.
• The company billed a customer $4,240 as fees for services provided.
• The company paid $520 cash for the monthly rent.
• The company collected $1,781 cash as partial payment for the account receivable created in transaction f.
• The company paid $1,100 cash in dividends to the owner (sole shareholder).

Required:
1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.

2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Q3. The transactions of Spade Company appear below.

• Kacy Spade, owner, invested $19,000 cash in the company in exchange for common stock.
• The company purchased office supplies for $551 cash.
• The company purchased $10,507 of office equipment on credit.
• The company received $2,242 cash as fees for services provided to a customer.
• The company paid $10,507 cash to settle the payable for the office equipment purchased in transaction c.
• The company billed a customer $4,028 as fees for services provided.
• The company paid $535 cash for the monthly rent.
• The company collected $1,692 cash as partial payment for the account receivable created in transaction f.
• The company paid $900 cash in dividends to the owner (sole shareholder).

Prepare the Trial Balance.

Q4. Following are the transactions of a new company called Pose-for-Pics.

Aug.	1	Madison Harris, the owner, invested $10,750 cash and $46,225 of photography equipment in the company in exchange for common stock.
	2	The company paid $3,600 cash for an insurance policy covering the next 24 months.
	5	The company purchased office supplies for $2,043 cash.
	20	The company received $3,100 cash in photography fees earned.
	31	The company paid $883 cash for August utilities.

Prepare general journal entries for the above transactions.

Q5. Following are the transactions of a new company called Pose-for-Pics.

Aug.	1	Madison Harris, the owner, invested $8,200 cash and $35,200 of photography equipment in the company in exchange for common stock.
	2	The company paid $3,800 cash for an insurance policy covering the next 24 months.
	5	The company purchased office supplies for $1,050 cash.
	20	The company received $5,031 cash in photography fees earned.
	31	The company paid $845 cash for August utilities.

Required:
1. Post the transactions to the T-accounts.

2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

Q6. The transactions of Spade Company appear below.

1. Kacy Spade, owner, invested $18,750 cash in the company in exchange for common stock.
2. The company purchased office supplies for $544 cash.
3. The company purchased $10,369 of office equipment on credit.
4. The company received $2,213 cash as fees for services provided to a customer.
5. The company paid $10,369 cash to settle the payable for the office equipment purchased in transaction c.
6. The company billed a customer $3,975 as fees for services provided.
7. The company paid $530 cash for the monthly rent.
8. The company collected $1,670 cash as partial payment for the account receivable created in transaction f.
9. The company paid $1,000 cash in dividends to the owner (sole shareholder).

Prepare the Trial Balance.

Q7. Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August.

Cash	$25,450	Consulting fees earned	$27,110
Accounts receivable	22,490	Rent expense	9,680
Office supplies	5,370	Salaries expense	5,700
Land	44,120	Telephone expense	990
Office equipment	20,140	Miscellaneous expenses	610
Accounts payable	10,460	Common stock	103,100
Dividends	6,120

Use the above information to prepare an August income statement for the business.

Q8. Use the above information to prepare an August statement of retained earnings for Help Today. (Hint: Net income for August is $10,130.)

Q9. Use the above information to prepare an August 31 balance sheet for Help Today. (Hint: The ending retained earnings account balance as of August 31 is $4,010.)

Q10. Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.

April	1	Tanner invested $90,000 cash along with office equipment valued at $21,600 n the company in exchange for common stock.
	2	The company prepaid $7,200 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent for $7,200.)
	3	The company made credit purchases for $10,800 in office equipment and $2,160 in office supplies. Payment is due within 10 days.
	6	The company completed services for a client and immediately received $2,000 cash.
	9	The company completed a $7,200 project for a client, who must pay within 30 days.
	13	The company paid $12,960 cash to settle the account payable created on April 3.
	19	The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.)
	22	The company received $5,760 cash as partial payment for the work completed on April 9.
	25	The company completed work for another client for $2,640 on credit.
	28	The company paid $6,200 cash in dividends.
	29	The company purchased $720 of additional office supplies on credit.
	30	The company paid $700 cash for this month’s utility bill.

Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).

2. Post the journal entries from part 1 to the ledger accounts.

3. Prepare a trial balance as of April 30.