ACC 205 Week 1 Assignment
Analyze the effects of these events on the accounting equation of the medical practice of Caren Smith, M.D.
Use a format similar to that of Exhibit 1-6, with headings for Cash; Medical supplies; Land; Accounts payable;
and Smith, capital.
- Analyze the effects of Draper Consulting transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash; Accounts receivable; Supplies; Equipment; Furniture; Accounts payable; and Draper, capital.
- Prepare the income statement of Draper Consulting for the month ended December 31, 2012.
- Prepare the statement of owner’s equity for the month ended December 31, 2012.
- Prepare the balance sheet at December 31, 2012.
P2-30A Journalizing transactions, posting to T-accounts, and preparing a trial balance [45–60 min]
Doris Stewart started her practice as a design consultant on September 1, 2012. During the first month of operations, the business completed the following transactions:
1 Received $42,000 cash and gave capital to Stewart.
4 Purchased supplies, $700, and furniture, $1,900, on account.
6 Performed services for a law firm and received $1,400 cash.
7 Paid $24,000 cash to acquire land for a future office site.
10 Performed service for a hotel and received its promise to pay the $1,000 within one week.
14 Paid for the furniture purchased September 4 on account.
15 Paid secretary’s bi-monthly salary, $490.
17 Received cash on account, $400.
20 Prepared a design for a school on account, $700.
28 Received $2,100 cash for consulting with Plummer & Gorden.
30 Paid secretary’s bi-monthly salary, $490.
30 Paid rent expense, $650.
30 Stewart withdrew cash of $3,000.
- Open the following T-accounts: Cash; Accounts receivable; Supplies; Furniture; Land; Accounts payable; Stewart, capital; Stewart, drawing; Service revenue; Salary expense; and Rent expense.
- Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.
- Post the transactions to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal, as shown in the chapter.
- Prepare the trial balance of Doris Stewart, Designer, at September 30, 2012.