Acct 550 Week 1 Homework Assignment

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 expires at the rate of $300 per month.

most directly related to measuring the performance and financial status of an enterprise are provided...