ACC 290 E3-4 b,c

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ACC 290 E3-4 b,c

A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operations is shown below. Each increase and decrease in stockholders’ equity is explained.

Assets = Liabilities + Stockholders’ Equity
Cash + Accounts Receivable + Supplies + Office Equipment = Accounts Payable + Common Stock + Retained Earnings
Rev. – Exp. – Div.
1. $20,000 $20,000 Com. Stock
2. -1,000 $5,000 $4,000
3. -750 $750
4. 4,400 $5,400 $9,800 Serv. Rev
5. -1,500 -1,500
6. -2,000 -2,000 Div.
7. -800 -800 Rent Exp.
8. 450 -450
9. -3,000 -3,000 Sal. Exp.
10. 500 -500 Util. Exp.

Describe each transaction.

E3-4 (b,c)

A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operations is shown below. Each increase and decrease in stockholders’ equity is explained.

Assets = Liabilities + Stockholders’ Equity
Cash + Accounts Receivable + Supplies + Office Equipment = Accounts Payable + Common Stock + Retained Earnings
Rev. – Exp. – Div.
1. $20,000 $20,000 Com. Stock
2. -1,000 $5,000 $4,000
3. -750 $750
4. 4,400 $5,400 $9,800 Serv. Rev
5. -1,500 -1,500
6. -2,000 -2,000 Div.
7. -800 -800 Rent Exp.
8. 450 -450
9. -3,000 -3,000 Sal. Exp.
10. 500 -500 Util. Exp.

Determine how much stockholders’ equity increased for the month.

$

Compute the net income for the month.

$
E3-9

This information relates to Pickert Real Estate Agency.

Oct. 1 Stockholders invested $30,000 in exchange for common stock of the corporation.
Oct. 2 Hires an administrative assistant at an annual salary of $42,000.
Oct. 3 Buys office furniture for $4,600, on account.
Oct. 6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,800 (not paid by Petty at this time).
Oct. 10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
Oct. 27 Pays $700 on account for the office furniture purchased on October 3.
Oct. 30 Pays the administrative assistant $3,500 in salary for October.

Post the transactions to T-accounts and complete the following trial balance.(If answer is zero, please enter 0, do not leave any fields blank.)

PICKERT REAL ESTATE AGENCY
Trial Balance
October 31, 2010
Debit Credit
Cash $ $
Accounts receivable
Office furniture
Accounts payable
Common stock
Service revenue
Salaries expense
$ $
P3-5A

Sunflower Architects incorporated as licensed architects on April 1, 2010. During the first month of the operation of the business, these events and transactions occurred:

April 1 Stockholders invested $15,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Spring Green Company $1,000.
10 Completed blueprints on a carport and billed client $1,500 for services.
11 Received $500 cash advance from J. Madison to design a new home.
20 Received $2,300 cash for services completed and delivered to M. Svetlana.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Spring Green Company for accounts payable due.
Journalize the transactions.(If no entry is required type No entry for the account and 0 for the amount.)

Date Account/Description Debit Credit
April 1 SuppliesCommon stockSalaries expenseAccounts receivableAccounts payableUnearned RevenueNo entryRent expenseCashService revenue
Salaries expenseRent expenseNo entryCommon stockSuppliesAccounts payableUnearned RevenueService revenueCashAccounts receivable
April 1 CashUnearned RevenueAccounts payableNo entryCommon stockSalaries expenseRent expenseService revenueAccounts receivableSupplies
Accounts receivableCommon stockUnearned RevenueNo entryRent expenseService revenueCashSuppliesSalaries expenseAccounts payable