[lilsar427]

let me know if these answers r right please

12/01 the owner gives you a despoit ticket showing he has put $25,000 in the company bank accounti and informs you that he has invested that cash in the business

cash DR : 25,000
capital CR: 25,000

12/01 the owner advises you thata he has also put a truch that he personally owns in the business and gives you the title to the vehiclle showing the transfer into the company. The truch has an appraised value of $10,560 according to the Blue Book you borrowed from a car dealer

vehicles DR: 10,560
Cash CR: 10,560

12/01 you write check #1 to xyz realty in the amount of $1500 to pay the first months rent

rent CR: 1500
Cash DR: 1500

12/02 a truck delievers a shipment of office furniture and the driver gives you a bill for 1,800 due. The owner authorizes the payment and you write check #2

office furniture DR: 1800
Cash CR: 1800

12/02 the owner tells you that he has opened a charge account at Staples and asks you to go there and pick up the office supplies that you will need to get started. You go to staples, purchase the supplies. And return with them. You have the supplies and an invoice for 175 that will is due to be paid in 30 dayhs. The company uses the asset method of accounting for supplies

supplies DR: 175
Supplies Exspense CR: 175

12/05 the owner brings in a check for 2700 from a customer named brown company and tells you it is a payment in full for services provided

A/R DR: 2700
Sales REvenue CR: 2700

12/07 the owner brings in a check for 1900 from a customer Green COmpany and tells you it's a payment in full for services provided

A/R DR: 1900
Sales REvenue CR: 1900

12/08 the owner hands you an invoice he has written for work he performed for brown company. The amount is 2000 and he tells you they will pay the bill in 10 days

A/R DR: 2000
Sales REvenue CR: 1900

12/14 the owner tells you to pay yourself 800 for two weeks pay (no deductions on tax) write check 3

wage expense DR: 800
Cash CR: 800

12/14 the owner tells you to write him a check dor 1250 for his personal use. Check 4

owner witdrawl DR: 1250
Cash CR: 1250

12/18 the owner tells you to make a partial payment of 80 to Staples on account. Check 5

A/P DR: 80
Cash CR: 80

12/20 brown company, the customer that owes you 2000 sends in a payment of 1500 with a note that they will pay the remainder on the 10th of January.

A/R CR: 1500
Sales revenue DR: 1500

12/22 your boss takes you and your spouse out to dinnder as a way to thank you for the good job you have been doing. He pays the bill out of his pocket.

not necessary?

12/27 the owner hands you an invoice he has written for work he performed for the Green Company. The amount is 3100. And he tells you they will pay the bill in 10 days

A/R DR: 3100
Sales Revenue CR: 3100

12/28 you reciece a bill of 600 for two years worth of coverage from your insurance company. It is due immetiately so you write check 5 and mail it

prepaid insurance CR: 600
insurance exspense DR: 600

12/31 at month end you make the adjustin entries based on the following:

the company truck has an estimated usufil life of 4 years and will have no salvage value at the end of that period.

depreciation exspense DR: 220
Accumulated depreciation exspense CR: 600

you count the office supplies on hand and determine that you have $100 left
-have no idea on this one :(

you make the insurance adjustment
-have no idea on this one :(

the office furniture has an estimated useful life of 5 years with no salvage value.

deprec exspense DR: 30
acc dep esp CR: 30


OK OK... I know it's a lot but I just went back to college after 2 years off so I'm strugglin a little bit with this one class in accounting... if you could please help me out I would GREATLY appriciate it!

THANKS A BUNCH SARAH

[CaptainForest]

12/01 the owner gives you a despoit ticket showing he has put $25,000 in the company bank accounti and informs you that he has invested that cash in the business

cash DR : 25,000
capital CR: 25,000

Correct.

12/01 the owner advises you thata he has also put a truch that he personally owns in the business and gives you the title to the vehiclle showing the transfer into the company. the truch has an appraised value of $10,560 according to the Blue Book you borrowed from a car dealer

vehicles DR: 10,560
Cash CR: 10,560

No. He is not selling the car to the business for cash, but rather investing.

Therefore,
Dr. Automobile 10,560
Cr. Capital 10,560

12/01 you write check #1 to xyz realty in the amount of $1500 to pay the first months rent

rent CR: 1500
Cash DR: 1500

No.

Dr. Rent Expense 1,500
Cr. Cash 1,500

Debit to cash means cash is going up, debit to any assets means it is going up.

Since cash is going down, you credit the asset, Cash.

12/02 a truck delievers a shipment of office furniture and the driver gives you a bill for 1,800 due. the owner authorizes the payment and you write check #2

office furniture DR: 1800
Cash CR: 1800

Correct.

12/02 the owner tells you that he has opened a charge account at Staples and asks you to go there and pick up the office supplies that you will need to get started. you go to staples, purchase the supplies. and return with them. you have the supplies and an invoice for 175 that will is due to be paid in 30 dayhs. the company uses the asset method of accountin for supplies

supplies DR: 175
Supplies Exspense CR: 175

Dr. Supplies 175
Cr. Accounts Payable – Staples 175.

At the end of the year/period, you will adjust for supplies expense.

12/05 the owner brings in a check for 2700 from a customer named brown company and tells you it is a payment in full for services provided

A/R DR: 2700
Sales REvenue CR: 2700

Not AR since you never recorded the sale.

Dr. Cash 2,700
Cr. Sales Revenue 2,700

12/07 the owner brings in a check for 1900 from a customer Green COmpany and tells you its a payment in full for services provided

A/R DR: 1900
Sales REvenue CR: 1900

See reason above.

Dr. Cash 1,900
Cr. Sales Revenue 1,900

12/08 the owner hands you an invoice he has written for work he performed for brown company. the amount is 2000 and he tells you they will pay the bill in 10 days

A/R DR: 2000
Sales REvenue CR: 1900

Why don’t your Debits and Credits match? Debits must ALWAYS equal CREDITS.

Dr. A/R 2,000
Cr. Sales Revenue 2,000

12/14 the owner tells you to pay yourself 800 for two weeks pay (no deductions on tax) write check 3

wage expense DR: 800
Cash CR: 800

Correct.

12/14 the owner tells you to write him a check dor 1250 for his personal use. check 4

owner witdrawl DR: 1250
Cash CR: 1250

Correct.

12/18 the owner tells you to make a partial payment of 80 to Staples on account. check 5

A/P DR: 80
Cash CR: 80

Correct.

12/20 brown company, the customer that owes you 2000 sends in a payment of 1500 with a note that they will pay the remainder on the 10th of January.

A/R CR: 1500
Sales revenue DR: 1500

Why are you debiting sales revenue?

Dr. Cash 1,500
Cr. AR 1,500

12/22 your boss takes you and your spouse out to dinnder as a way to thank you for the good job you have been doin. he pays the bill out of his pocket.

not neccessary??

I agree. Although if he submits the receipt to the company, he might then try and claim it as an employee benefit expense.

12/27 the owner hands you an invoice he has written for work he performed for the Green Company. the amount is 3100. and he tells you they will pay the bill in 10 days

A/R DR: 3100
Sales Revenue CR: 3100

Correct.

12/28 you reciece a bill of 600 for two years worth of coverage from your insurance company. it is due immetiately so you write check 5 and mail it

prepaid insurance CR: 600
insurance exspense DR: 600

you only accrue insurance expense at the end of the year/period.

Dr. Prepaid insurance 600
Cr. Cash 600

You are buying an asset, prepaid insurance, for cash.

When you accrue for adjusting entries, you take down your prepaid insurance asset and increase you expense.

12/31 at month end you make the adjustin entries based on the following:

the company truck has an estimated usufil life of 4 years and will have no salvage value at the end of that period.

depreciation exspense DR: 220
Accumulated depreciation exspense CR: 600

The car was recorded at 10,560 earlier.

10,560 / 4 = 2,640 and using the half year rule, 2,640 x .5 = 1,320

Dr. depreciation exspense 1,320
Cr. Accumulated depreciation 1,320

you count the office supplies on hand and determine that you have $100 left
-have no idea on this one :(

If you remember earlier, we purchased $175 worth of Supplies from Staples.

So, if you only have $100 left, that means you used up $75 of supplies.

Dr. Supplies Expense 75
Cr. Supplies 75

you make the insurance adjustment
-have no idea on this one :(

On Dec. 28, you bought a 2 year policy for $600

It is not only Dec. 31…when does the insurance policy start? If it startrs Jan 1, no adjustment is needed. I doubt it will start on Dec. 28, but if it does…

You have used up 3 days out of the entire policy

1 year = 300

3 / 365 x 300 = 2.47

Dr. Insurance Expense 2.47
Cr. Prepaid Insurance 2.47

That is, 2 dollars and 47 cents.

But I believe the correct answer is no adjustment since I believe the policy probably doesn’t start until Jan. 1

the office furniture has an estimated usefull life of 5 years with no salvage value.

deprec exspense DR: 30
acc dep esp CR: 30

I got 29.58, but rounding, I get 30 as well.

Correct.

One thing though, you need to identify your account names better so you don’t mix it up with car depreciation, etc.

Dr. Depreciation Expense – Office Furniture 30
Cr. Accumulated Depreciation – Office Furniture 30