Scribd
Upload
20 views1 page

Module 4 in Class Practices Exercises. Accounting 101

Uploaded by

Flier Background
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
20 views1 page

Module 4 in Class Practices Exercises. Accounting 101

Uploaded by

Flier Background
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

In Class Practice Exercises – Accounting 101

Question 1
Chuck Beavers opens a Bed & Breakfast business next to Humber College North Campus in Toronto. He
is the sole owner of the proprietorship, which he names “Beavers B & B”. During the first month of
operations, January 2010, the following transactions occurred:
(a) Beavers invest $ 35,000 of personal funds to start the business.
(b) The business purchases, on account, office supplies costing $ 350
(c) Beavers B & B pays cash of $ 30,000 to acquire a parcel of land. The business intends to use the
land as a future extension.
(d) The business provided lodging services for clients and receives cash of $ 1,900.
(e) The business pays $ 100 on the account payable created in Transaction (b).
(f) Chuck Beavers pays $ 2,000 of personal funds for a vacation for his family.
(g) The business pays cash expenses for office rent, $ 400, and utilities, $ 100
(h) The business returns to the supplier office supplies that cost $ 150. The wrong supplies were
shipped.
(i) Chuck Beavers withdraws $ 1,200 cash for personal use.

Required:
(A) Analyze the preceding transactions in terms of their effects on the accounting equation of Beavers B & B.
(B) Prepare the income statement, statement of owner’s equity, and balance sheet of Beavers B & B after
recording the transactions.

Question 2
Recently, Tom Golden formed a Project Management Consulting practice as a sole proprietorship. The
balance of each item in the proprietorship accounting equation follows for April 2 and for each of the
nine business days given:
Cash A/R Office Land A/P Owner’s
Supplies Equity
April 02 $ 3,000 $ 7,000 $ 800 $ 11,000 $ 3,800 $ 18,000
9 6,000 4,000 800 11,000 3,800 18,000
14 4,000 4,000 800 11,000 1,800 18,000
17 4,000 4,000 1,100 11,000 2,100 18,000
19 6,000 4,000 1,100 11,000 2,100 20,000
20 4,900 4,000 1,100 11,000 1,000 20,000
22 10,900 4,000 1,100 5,000 1,000 20,000
25 10,900 4,200 900 5,000 1,000 20,000
26 10,700 4,200 1,100 5,000 1,000 20,000
30 6,600 4,200 1,100 5,000 1,000 15,900

Required:
(A) Assuming that a single transaction took place on each day, describe briefly the transaction that was most
likely to have occurred beginning with April 9. Indicate which accounts were affected and by what
amount. No revenue or expense transactions occurred on these dates.

This document is marked Public

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy