ACCT 550 Intermediate Accounting Week 1 Homework

ACCT 550 Intermediate Accounting Week 1 Homework

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ACCT 550 Intermediate Accounting Week 1 Homework

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 below.

Assets	Distributions to owners	Expenses
Liabilities	Comprehensive income	Gains
Equity	Revenues	Losses
Investments by owners

Identify the element or elements associated with the 12 items below.

CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.