Face. 3 Task Set A - Accounting Principles, Volume 1: Financial Accounting | OpenStaxName (2023)

O 3.1For each of the following situations, write the principle, assumption, or concept that justifies or explains what happened.

1. A landscaper received a request from a client and a cash advance to install grass on a house that would not be ready for installation until the following March. Owner must file sales order revenue in March of next year, not December of this year.
2. A company divides its income statement into four quarters of the year.
3. The land was purchased for $205,000 upfront; The land is listed on the buyer's balance sheet at $205,000.
4. Brandy's Flower Shop forecasts its balance sheet for the next five years.
5. When preparing a business's financial data, the owner ensures that expense transactions are separate from the expenses of the other business he owns.
6. A business records expenses incurred to generate reported revenue.

O 3.2Given the following account balances, what is the missing amount?

O 3.2RA 3.4Assuming the balance changes for the period as follows, what is the missing amount?

O 3.2RA 3.4Assuming the balance changes for the period as follows, what is the missing amount?

O 3.2RA 3.4Identify the financial statements in which each of the following categories of accounts would appear: the balance sheet (BS), the income statement (IS), or the statement of retained earnings (RE). Enter the normal balance (Dr for debit; Cr for credit) for each account category.

RA 3.4Indicate what effect (+ to increase; – to decrease) the following transactions would have on the balance sheet equation: Assets = Liabilities + Equity.

O 3.1Indicate how changes would be recorded in the following types of accounts (Dr for debit; Cr for credit).

RA 3.4Identify the normal balance (Dr for Debit; Cr for Credit) and account type (A for Assets, L for Liabilities, E for Equity, E-rev for Income, E-exp for Expenses, and E-c for Cons) for each Account the following items.

RA 3.4Report the net effect (+ for increase; – for decrease; 0 for no effect) of each of the following transactions on each part of the accounting equation: Assets = Liabilities + Equity. For example, for a vendor balance payment, A(–) = L(–) + E(0).

1. Sale of goods to customers on account
2. payment on account
3. Purchase of equipment in cash.
4. debt collection
5. Purchase of inputs on account

RA 3.4Indicate whether the following transactions would be recorded with a debit (Dr) or credit (Cr) entry. Enter the normal account balance.

BAJA 3.5Legal Services Inc. provides the following information for the first month of operation:

1. The business started with the sale of common stock worth $100,000.
2. Six months rent paid in advance, $4,500.
3. $1,000 in services rendered. The customer pays at a later date.
4. An office worker was hired. The worker earns $275 a week.
5. Payment of $500 received from customer at "C".
6. He bought $250 worth of supplies on credit.
7. receive electricity bill. We will pay the $110 within thirty days.
8. He paid the hired worker on "D" for a week's work.
9. We have received $100 from a client for services we will be providing in the coming week.
10. Dividends of $1,500 were paid.

Prepare the necessary accounting entries to record these transactions. If none of these operations require registration, indicate it and justify the reason.

BAJA 3.5Sewn for You had the following transactions in the first week of trading.

1. Jessica Johansen founded Sewn for You, a company of seamstresses, contributing $20,000 in exchange for stock.
2. He paid $2,250 to cover the first three months of rent.
3. She bought sewing supplies for $500. She paid cash.
4. She bought a sewing machine for $1,500, paid $200 in cash, and signed a promissory note for the remainder.
5. You completed an order for a customer and earned $180. The customer paid cash.
6. She received a $500 deposit to make a wedding dress.
7. I received a utility bill for $125 due in three weeks.
8. You have completed a $45 change order. The customer has requested an invoice.

Prepare the necessary accounting entries to record these transactions. If none of these operations require registration, indicate it and justify the reason.

BAJA 3.5George Hoskin started his own business, Hoskin Hauling. The following transactions took place in the first two weeks:

1. George Hoskin contributed $12,000 cash and a $10,000 truck to start the business. In return, he received common stock.
2. He prepaid two months rent, $800.
3. He agreed to do some transport services for a price of $1,200.
4. The transport order discussed under "C" has been completed. They will pay us later.
5. Received payment of $600 for transport work performed on "D."
6. He bought gasoline on credit, $50.
7. He did other transport jobs. The $750 won was paid in cash.

Record the following transactions on T accounts. Label each entry with the corresponding letter. Add T beads when finished.

BAJA 3.5Prepare journal entries to record the following transactions. Create a T-money account, record all transactions related to the account, and calculate the final account balance. Assume an opening cash balance of $16,333.

1. February 2, Shares issued to shareholders for $25,000 in cash
2. March 10 Cash payment for equipment purchase, $16,000

BAJA 3.5Prepare journal entries to record the following transactions. Create an Accounts Payable T account, record all transactions related to the account, and make a final account balance. Assume an opening accounts payable balance of $5,000.

1. Feb 2 bought an asset, stock, per account, $30,000
2. March 10, Lender paid part of February purchase, $12,000

BAJA 3.5Prepare journal entries to capture the following transactions for the month of July:

1. rent paid on the first of the month for the current month, $2,000
2. Last month's balance paid on the 10th of the month due on bills, $3,100
3. twelve days of the month cash payment for services rendered, $5,500
4. wages paid to employees on the twenty-first of the month, $3,600
5. on the thirty-first day of the month, paid by dividends to shareholders, $800

BAJA 3.5Prepare journal entries to capture the following transactions for the month of November:

1. Common stock issued for cash on the first of the month, $20,000
2. Bought equipment for $10,500 cash on the third of the month
3. On the tenth of the month, he received $14,250 in cash for bookkeeping services.
4. miscellaneous expenses paid on the fifteenth of the month, $3,200
5. Employee wages paid on the last day of the month, $8,600

BAJA 3.5Post the subsequent July transactions to the T accounts for accounts receivable, sales revenue, and cash, and report the ending balance. Do not assume any opening balances on these accounts.

1. On the first day of the month, he sold products to customers for cash, $13,660
2. Products sold on the fifth of the month for on-account customers, $22,100
3. Money collected from customer accounts on the 10th of the month, $18,500

BAJA 3.5Record the following November transactions in T accounts for accounts payable, inventory, and cash, and report the ending balance. Assume there are no opening payables or inventory balances and an opening cash balance of $36,500.

1. Stock purchased on account, $16,000
2. Suppliers paid $12,000 for a piece of inventory purchased earlier in the month
3. Stock purchased for cash, $10,500

BAJA 3.6Using the following alphabetical account information, create an unadjusted trial balance in the correct format. Assume the accounts have normal balances.

BAJA 3.6Using the following alphabetical account information, create an unadjusted trial balance in the correct format. Assume all accounts have normal balances.