Accounting Principles I
ACCT110–Accounting Principles I
Week 1Homework
Deadline
Due by the end of Week 1 at 11:59 pm, ET.
Directions
Question 1:
For the attached table, identify the type of account as an asset, liability, or equity account. Then type debit or credit within the increase/decrease columns to signify whether a debit increases the account, or a credit increases the account. The same for the decrease column. (30 points, 1 point per answer)
| Account Name | Account Type | Increase | Decrease | |
| 1 | Cash | |||
| 2 | Accounts Payable | |||
| 3 | Prepaid Insurance | |||
| 4 | Rent Expense | |||
| 5 | Unearned Revenue | |||
| 6 | Owner Capital | |||
| 7 | Fees Earned | |||
| 8 | Owner Withdrawal | |||
| 9 | Equipment | |||
| 10 | Note Payable |
Question 2:
In a double entry accounting system, each transaction affects at least two different accounts. For the following transactions identify the two accounts and what type of account is each, asset, liability, or equity account. (40 points, 1 point per answer)
- On August 1, Madison Harris, the owner invested $6,500 cash into the company.
| Name of Accounts Affected: | Type of Account: |
- On August 2, the company paid $2,100 cash for an insurance policy covering the next 24 months.
| Name of Accounts Affected: | Type of Account: |
- On August 5, the company purchased Office Supplies for $800 on credit.
| Name of Accounts Affected: | Type of Account: |
- On August 7, the company received $2,500 cash for services rendered.
| Name of Accounts Affected: | Type of Account: |
- On August 10, the company paid $800 on account for the supplies purchased on Aug 5.
| Name of Accounts Affected: | Type of Account: |
- On August 15, the company billed Lee Services $1,500 for services provided on that date.
| Name of Accounts Affected: | Type of Account: |
- On August 21, the owner withdrew $250 cash.
| Name of Accounts Affected: | Type of Account: |
- On August 25, the company purchased equipment for $1,000 cash.
| Name of Accounts Affected: | Type of Account: |
- On August 31, the company paid $375 cash for utilities.
| Name of Accounts Affected: | Type of Account: |
- On August 31, the company paid $1,500 in advance for 3 months rent.
| Name of Accounts Affected: | Type of Account: |
Question 3:
The accounting equation is Assets = Liabilities + Owner’s Equity. For the following, determine the amount in question for each individual situation. (10 points, 2 points per answer)
| Assets = | Liabilities + | Owner’s Equity | |
| 1 | ??? | $20,000 | $45,000 |
| 2 | $100,000 | $34,000 | ??? |
| 3 | $154,000 | ??? | $40,000 |
| 4 | $250,000 | ??? | $78,000 |
| 5 | ??? | $63,000 | $49,000 |
Question 4:
Use the following information to create a Trial Balance for the company. As of October 31 the company, ABC Services, had the following account balances: (20 points)
| Cash | $11,500 |
| Accounts Receivable | 14,000 |
| Office Supplies | 3,250 |
| Land | 46,000 |
| Office Equipment | 18,000 |
| Accounts Payable | 8,500 |
| Owner Capital | 84,000 |
| Owner Withdrawals | 2,000 |
| Consulting Revenue | 14,000 |
| Rent Expense | 3,500 |
| Salaries Expense | 7,000 |
| Utility Expense | 700 |
| Miscellaneous Expense | 550 |
Use the following table to complete the trial balance:
| ABC Services | |||
| Trial Balance | |||
| As of October 31 | |||
| Account: | Debits | Account: | Credits |
| TOTAL: | TOTAL: | ||
