DEVRY ACCT 550 Week 1 Homework Assignment
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ACCT 550 Week 1 Homework Assignment
E3-1 (Transaction Analysis—Service Company) Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.
April
2
Invested $30,000 cash and equipment valued at $14,000 in the business.
2
Hired a secretary-receptionist at a salary of $290 per week payable monthly.
3
Purchased supplies on account $700. (debit an asset account.)
7
Paid office rent of $600 for the month.
11
Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.)
12
Received $3,200 advance on a management consulting engagement.
17
Received cash of $2,300 for services completed for Ferengi Co.
21
Paid insurance expense $110.
30
Paid secretary-receptionist $1,160 for the month.
30
A count of supplies indicated that $120 of supplies had been used.
30
Purchased a new computer for $5,100 with personal funds. (The computer will be used exclusively for business purposes.)
E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
Debit
Credit
Prepaid Insurance
$ 3,600
Supplies
2,800
Equipment
25,000
Accumulated Depreciation—Equipment
$ 8,400
Notes Payable
20,000
Unearned Rent Revenue
6,300
Rent Revenue
60,000
Interest Expense
Salaries and Wages Expense
14,000
An analysis of the accounts shows the following.
The equipment depreciates $250 per month.
One-third of the unearned rent was earned during the quarter.
Interest of $500 is accrued on the notes payable.
Supplies on hand total $650.
Insurance...