Accounting Assignment2

Assignment 2

Ex. 3.3 Nov. 1 Cash ……………………………………………………… Capital Stock ……………………………… Issued stock in exchange for cash. Land ……………………………………………………… Building …………………………………………………… Cash ……………………………………… Notes Payable …………………………… Purchased land and building, by paying $33,600 cash and issuing a note payable for the remaining balance. 120,000 120,000 70,000 58,600 33,600 95,000

8

15 Office Equipment ………………………………………… Accounts Payable ………………………… Purchased office equipment on account. 21 Accounts Payable ………………………………………… Office Equipment ………………………… Returned some of the office equipment purchased on November 15. 25 Notes Payable …………………………………………… Cash ……………………………………… Paid note payable. 30 Vehicles …………………………………………………… Cash ……………………………………… Notes Payable …………………………… Purchased vehicles by paying $1,400 cash and issuing a note payable for the remaining balance.

3,200 3,200 480 480

12,000 12,000 9,400 1,400 8,000

Ex. 3.8 a.

Apr.

5

Accounts Receivable …………………………… Drafting Fees Earned …………………… Prepared plans for Spangler Construction; payment due in 30 days.

900 900

May

17

Dividends ………………………………………. Dividends Payable ……………………… Declared cash dividend; payment due June 25.

5,000 5,000 2,000 2,000

May

29

Professional Expenses ………………………….. Accounts Payable ………………………. Received accounting bill from Bob Needham due on June 10.

June 4

Cash ……………………………………………. Accounts Receivable ……………………. Received full payment from Spangler Construction for bill sent April 5. Accounts Payable ……………………………… Cash ……………………………………. Paid amount owed to Bob Needham, CPA.

900 900

June 10

2,000 2,000 5,000 5,000

June 25

Dividends Payable …………………………….. Cash ……………………………………. Paid cash dividend declared May 17.

b. The following transactions will not cause a change in net income. May 17: Declaration of a cash dividend. June 4: Collection of an account receivable. June 10: Payment of an account payable. June 25: Payment of a dividend payable.

Problem...