ACC 205 Week 1 Assignment Basic Accounting Equations
Basic Accounting Equations. Please complete each of the exercises below in a word document. Save the
document, and submit it in the appropriate week using the Assignment Submission button.
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. Amounts paid to a mall for rent.
b. Amounts to be paid in 10 days to suppliers.
c. A new fax machine purchased for office use.
d. Land held as an investment.
e. Amounts due from customers.
f. Daily sales of merchandise sold.
g. Promotional costs to publicize a concert.
h. A long-term loan owed to Citizens Bank.
i. 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 $40,000 Accounts receivable $24,000
Cash 21,000 Loan payable 30,000
J. Preston, capital 65,000 Land 21,000
Accounts payable ?
Prepare a balance sheet as of December 31, 20XX.(See Exhibit 1.1 and 1.4)
4. Basic transaction...