ASSIGNMENT 04

A01 Introduction to Accounting

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in format. Your response should be four  pages; refer to the “Assignment Format” page located on the Course Home page for specific format requirements.

Part A (30 points)

Record the following transactions in the basic accounting equation:

a. Brian invests $10,000 cash to begin an accounting service.

b. The company buys office furniture for cash, $600.

c. The company buys additional office furniture on account, $300.

d. The company makes a payment on the office furniture, $200.

             Brian’s Accounting Service

                ASSETS                         =           LIABILITIES                       +              OWNER’S EQUITY

Cash + Office Furniture               =           Accounts Payable           +             Brian’s Capital

a.

b.

c.

d.

Part B (40 points)

The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare  trial balance in good form.

Cash                                 $1,370                Benson, Withdrawals    $ 500

Accounts Payable           770                     Accounts Receivable     1,600

Office Equipment           900                     Service Fees                    2,730

Benson, Capital              1,500                  Salaries Expense            630

Part C (30 points)

The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.

a. Tyler invested $6,500 in the bike service from his personal savings account.

b. Bought office equipment for cash, $900.

c. Performed bike service for a customer on account, $1,000.

d. Company cell phone bill received, but not paid, $80.

e. Collected $500 from customer in transaction c.

f. Tyler withdrew $300 for personal use.