Instructions Diagram from Kloos, et al. (2012) For this task you will write a paper listing at least five important social problems or issues facing your community or society. Then choose one of the

ACCT&201 Week 3 Homework

1. Using the notion that the accounting equation (Assets = Liabilities + Stockholders' Equity) must remain in balance, indicate whether each of the following transactions is possible.

	Transactions	Yes/No
a.	Cash increases; Accounts Payable decreases.	No
b.	Service Revenue increases; Salaries Payable increases.	No
c.	Advertising Expense increases; Cash decreases.	Yes

2. Hokies uses the following accounts:


Accounts Payable	Equipment	Accounts Receivable
Cash	Supplies	Utilities Expense
Prepaid Rent	Rent Expense	Service Revenue
Common Stock	Notes Payable	Retained Earnings
Salaries Payable	Salaries Expense	Dividends

Required:

Indicate which accounts should be debited and which should be credited for the following transactions of Hokies company.

	Transactions	Account Debited	Account Credited
	Example: Purchase equipment in exchange for cash.	Equipment	Cash
1.	Pay a cash dividend.
2.	Pay rent in advance for the next three months.
3.	Provide services to customers on account.
4.	Purchase office supplies on account.
5.	Pay salaries for the current month.
6.	Issue common stock in exchange for cash.
7.	Collect cash from customers for services provided in (3) above.
8.	Borrow cash from the bank and sign a note.
9.	Pay for the current month's utilities.
10.	Pay for office supplies purchased in (4) above.

3. Below is a list of typical accounts.

Required:
For each account, indicate (1) the type of account and (2) whether the normal account balance is a debit or credit.

Accounts		Type of Account	Normal Balance (Debit or Credit)
1.	Salaries Payable
2.	Common Stock
3.	Prepaid Rent
4.	Buildings
5.	Utilities Expense
6.	Equipment
7.	Rent Expense
8.	Notes Payable
9.	Salaries Expense
10.	Insurance Expense
11.	Cash
12.	Service Revenue

4. Below is a list of activities for Jayhawk Corporation.

Required:
Select from the activities of Jayhawk Corporation whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity. The first item is provided as an example.

Transaction		Assets	=	Liabilities	+	Stockholders' Equity
1.	Issue common stock in exchange for cash.	Increase		No effect		Increase
2.	Purchase business supplies on account.
3.	Pay for legal services for the current month.
4.	Provide services to customers on account.
5.	Pay employee salaries for the current month.
6.	Provide services to customers for cash.
7.	Pay for advertising for the current month.
8.	Repay loan from the bank.
9.	Pay dividends to stockholders.
10.	Receive cash from customers in (4) above.
11.	Pay for supplies purchased in (2) above.

5. Below is a list of activities for Purple Cow Incorporated.

Required:
For each activity, indicate the impact on the accounting equation. After doing so for all transactions, ensure that the accounting equation remains in balance. The first item is provided as an example. (Decreases to account classifications should be entered as a negative.)

Transaction		Assets	=	Liabilities	+	Stockholders' Equity
1.	Provide services to customers on account, $1,600.	$1,600		$0		$1,600
2.	Pay $400 for current month's rent.
3.	Hire a new employee, who will be paid $500 at the end of each month.
4.	Pay $100 for advertising aired in the current period.
5.	Purchase office supplies for $400 cash.

6.	Receive cash of $1,000 from customers in (1) above.

7.	Obtain a loan from the bank for $7,000.
8.	Receive a bill of $200 for utility costs in the current period.
9.	Issue common stock for $10,000 cash.
10.	Pay $500 to employee in (3) above.
	Totals

6. Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred.

July   3 Jake provides lawn services to Luke’s repair shop on account, $500.
July   6 One of Jake’s mowers malfunctions. Luke provides repair services to Jake on account, $450.
July   9 Luke pays $500 to Jake for lawn services provided on July 3.
July 14 Luke borrows $600 from Jake by signing a note.
July 18 Jake purchases advertising in a local newspaper for the remainder of July and pays cash, $110.
July 20 Jake pays $450 to Luke for services provided on July 6.
July 27 Luke performs repair services for other customers for cash, $800.
July 30 Luke pays employee salaries for the month, $300.
July 31 Luke pays $600 to Jake for money borrowed on July 14.
Required:
Record the transactions for Jake’s Lawn Maintenance Company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Instructions Diagram from Kloos, et al. (2012) For this task you will write a paper listing at least five important social problems or issues facing your community or society. Then choose one of the 1

7. Please look at question 6 and answer this question.

Required:
1. Record each transaction for Luke's Repair Shop. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

8. 2. Using the format shown below, enter the impact of each transaction on the accounting equation for each company. (Decreases to account classification should be entered as a negative.)

JAKE'S LAWN MAINTENANCE COMPANY							LUKE'S REPAIR SHOP
	Assets	=	Liabilities	+	Stockholders' Equity	Assets		=	Liabilities	+	Stockholders' Equity
July 03	500		$0		$500	$0			$500		$(500)
06
09

14

18
20

27
30
31

9.
Consider the recorded transactions below.

		Debit	Credit
1.	Accounts Receivable	8,400
	Service Revenue		8,400

2.	Supplies	2,300
	Accounts Payable		2,300

3.	Cash	10,200
	Accounts Receivable		10,200

4.	Advertising Expense	1,000
	Cash		1,000

5.	Accounts Payable	3,700
	Cash		3,700

6.	Cash	1,100
	Deferred Revenue		1,100

Required:

Post each transaction to T-accounts and calculate the ending balance for each account. The beginning balance of each account before the transactions is: Cash, $3,400; Accounts Receivable, $4,200; Supplies, $400; Accounts Payable, $3,500; Deferred Revenue, $300. Service Revenue and Advertising Expense each have a beginning balance of zero.

Cash		Accounts Receivable
Beg. bal.	Beg. bal.



End. bal.	End. bal.

Supplies		Accounts Payable
Beg. bal.	Beg. bal.


End. bal.	End. bal.

Deferred Revenue		Service Revenue
Beg. bal.	Beg. bal.


End. bal.	End. bal.

Advertising Expense
Beg. bal.


End. bal.

10. Below are the account balances of Bruins Company at the end of November.

Accounts	Balances		Accounts	Balances
Cash		40,000	Common Stock		50,000
Accounts Receivable		50,000	Retained Earnings		35,000
Supplies		1,100	Dividends		1,100
Prepaid Rent		3,000	Service Revenue		65,000
Equipment		?	Salaries Expense		30,000
Accounts Payable		17,000	Rent Expense		12,000
Salaries Payable		5,000	Interest Expense		3,000
Interest Payable		3,000	Supplies Expense		7,000
Deferred Revenue		9,000	Utilities Expense		6,000
Notes Payable		30,000

Required:
Prepare a trial balance by placing amounts in the appropriate debit or credit column and determining the balance of the Equipment account.

BRUINS COMPANY
Trial Balance
November 30
Accounts	Debit	Credit





















Totals	$0	$0