Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 1, Problem 4R
On June 1 of the current year, Wilson Wood opened Woodyʼs Web Services. This sole proprietorship had the following transactions during June.
- a. Opened a business checking account and made a deposit, $9,000.
- b. Paid rent for June for office space and computer equipment, $3,000.
- c. Purchased office supplies (stamps, pens, etc.) on account, $1,980.
- d. Received cash for services rendered, $4,500.
- e. Paid creditor for office supplies purchased on account, $1,400.
- f. Purchased office supplies for cash, $420.
- g. Billed clients for consultations performed on account, $4,600.
- h. Paid monthly internet service bill of $360.
- i. Paid the secretaryʼs salary of $2,400.
- j. Returned $300 of office supplies purchased in transaction f. Received a full refund.
- k. Received cash from clients previously billed, $3,000.
- l. Cash was withdrawn for ownerʼs personal use, $2,000.
How does transaction m differ from transactions a through l? In other words, why is it treated as a special item?
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On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Purchased office supplies on account, $3,010.
c. Paid creditor on account, $1,900.
d. Earned sales commissions, receiving cash, $30,690.
Domingo Company started its business on January 1, 2019. The following transactions occurredduring the month of May. Prepare the journal entries in the journal on Page 1.A. The owners invested $10,000 from their personal account to the business account.B. Paid rent $500 with check #101.C. Initiated a petty cash fund $500 with check #102.D. Received $1,000 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30days.G. Received $800 cash for services rendered.H. Paid wages $600, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77,miscellaneous expense $55. Cash on hand $11. Check #106.J. Increased petty cash by $30, check #107.
On April 1, 2019, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:a. Opened a business bank account with a deposit of $24,000 from personal funds.b. Paid rent on office and equipment for the month, $3,600.c. Paid automobile expenses (including rental charge) for the month, $1,350, and miscellaneous expenses, $600.d. Purchased office supplies on account, $1,200.e. Earned sales commissions (revenue) from selling real estate, receiving cash, $19,800.f. Paid creditor on account, $750.g. Paid office salaries, $2,500.h. Withdrew cash for personal use, $3,500.i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.
Chapter 1 Solutions
Excel Applications for Accounting Principles
Ch. 1 - On June 1 of the current year, Wilson Wood opened...Ch. 1 - On June 1 of the current year, Wilson Wood opened...Ch. 1 - On June 1 of the current year, Wilson Wood opened...Ch. 1 - On June 1 of the current year, Wilson Wood opened...Ch. 1 - On June 1 of the current year, Wilson Wood opened...Ch. 1 - On June 1 of the current year, Wilson Wood opened...Ch. 1 - Prob. 7R
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