Assets total $100,000 and liabilities total $20,000 What is the equity of the business $800 $8,000 $80,000 $88,000 None of the above If during the accounting period the assets decreased by $10,000, and equity increased by $2,000, then how did liabilities change Increased by $12,000 Increased by $8,000 Decreased by $12,000 Decreased by $8,000 Decreased by $6,000 If during the accounting period the assets increased by $14,000, and equity increased by $4,000, then how did liabilities change Increased by $10,000 Increased by $4,000 Decreased by $4,000 Decreased by $10,000 Decreased by $18,000 Purchasing equipment on account will have what effect on the accounting equation Increase in equipment and a decrease in equity Increase in equipment and an increase in equity Increase in equipment and an increase in liabilities Increase in equipment and a decrease in liabilities None of the above Services rendered for which cash has not yet been received will have what effect on the components of the accounting equation Increase in accounts receivable and a decrease in equity Increase in accounts receivable and an increase in equity Decrease in accounts receivable and an increase in equity Increase in fees earned and a decrease in equity Decrease in accounts receivable and a decrease in equity Problem 1 Professor Quark opens his own company, Electronic Tutorial Services, and completes the following transactions in June 6 1 Quark invests $12,000 into the business 6 3 Purchased $1,800 of equipment on account 6 4 Paid $360 for a two year insurance policy 6 6 Purchased office supplies for cash, $300 6 9 Purchased a new computer for $7,500 Paid $1,500 cash agreed to pay the remainder in 30 days 6 10 Billed student Fiona Smith $40 for tutorial services that were performed 6 14 Paid for the equipment purchased on June 3rd 6 25 Received $35 cash from student Bert Bantrum for tutorial services performed 6 30 Student billed on June 10 pays the amount due to Quark 6 30 Quark withdraws $500 for personal use Required Prepare the journal entries to record these transactions How much cash did Professor Quark have at the end of June Problem 2 Maria Sanchez started the Merry Mowers lawncare business She began operations on May 1st and completed the following transactions, which included her initial investment of $8,000 cash After these transactions, the ledger included the following accounts with normal balances Cash $ 9,440 Office Supplies 500 Equipment 3,000 Accounts Payable 500 Notes Payable 2,000 Maria Sanchez, Capital 8,000 Lawncare Revenue 3,200 Gas and Oil Expense 210 Required Prepare a balance sheet and income statement for this business at the end of May Problem 3 Below are accounts listed for September for PC Partners, a company that installs repairs home computers for customers The business is owned by Ed Connor The accounts are listed in alphabetical order For the month of September, prepare an income statement and a balance sheet ACCOUNT BALANCE Accounts Payable 4,200 Accounts Receivable 8,480 Advertising expense 420 Capital (Ed Connor) at 08 31 04 56,000 Cash 35,460 Entertainment Expense 600 Equipment 15,700 Installation Revenue 15,600 Miscellaneous Revenue 800 Photocopying Expense 150 Rent Expense 1,300 Repair Revenue 8,650 Supplies 8,400 Truck 8,500 Unearned Revenue 760 At the end of the accounting period, the business had $4,500 of office supplies on hand At the beginning of the period, the amount of supplies on hand was $3,000 If the business purchased $12,000 of office supplies during the year, what amount of office supplies were used during year $16,500 $14,250 $10,500 $ 9,750 None of the above Zach LLP wrote a check to pay an advertising bill for services for the next month What is the entry Debit Loan Note Payable, Credit Cash Debit Cash, Credit Account Payable Debit Prepaid Advertising, Credit Cash Debit Cash, Credit Advertising Expense

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Assets total $100,000 and liabilities total $20,000. What is the equity of the business? $800 $8,000 $80,000 $88,000 None of the above If during the

Assets total $100,000 and liabilities total $20,000. What is the equity of the business?
1. $800
2. $8,000
3. $80,000
4. $88,000
5. None of the above
If during the accounting period the assets decreased by $10,000, and equity increased by $2,000, then how did liabilities change?

Increased by $12,000
Increased by $8,000
Decreased by $12,000
Decreased by $8,000
Decreased by $6,000

If during the accounting period the assets increased by $14,000, and equity increased by $4,000, then how did liabilities change?

Increased by $10,000
Increased by $4,000
Decreased by $4,000
Decreased by $10,000
Decreased by $18,000

Purchasing equipment on account will have what effect on the accounting equation?

Increase in equipment and a decrease in equity
Increase in equipment and an increase in equity
Increase in equipment and an increase in liabilities
Increase in equipment and a decrease in liabilities
None of the above

Services rendered for which cash has not yet been received will have what effect on the components of the accounting equation?

Increase in accounts receivable and a decrease in equity
Increase in accounts receivable and an increase in equity
Decrease in accounts receivable and an increase in equity
Increase in fees earned and a decrease in equity
Decrease in accounts receivable and a decrease in equity

Problem #1 Professor Quark opens his own company, Electronic Tutorial Services, and completes the following transactions in June:

6/1 Quark invests $12,000 into the business.
6/3 Purchased $1,800 of equipment on account.
6/4 Paid $360 for a two-year insurance policy.
6/6 Purchased office supplies for cash, $300.
6/9 Purchased a new computer for $7,500. Paid $1,500 cash agreed to pay the remainder in 30 days.
6/10 Billed student Fiona Smith $40 for tutorial services that were performed.
6/14 Paid for the equipment purchased on June 3rd.
6/25 Received $35 cash from student Bert Bantrum for tutorial services performed.
6/30 Student billed on June 10 pays the amount due to Quark.
6/30 Quark withdraws $500 for personal use.

Required: Prepare the journal entries to record these transactions. How much cash did Professor Quark have at the end of June?

Problem #2 Maria Sanchez started the Merry Mowers lawncare business. She began operations on May 1st and completed the following transactions, which included her initial investment of $8,000 cash. After these transactions, the ledger included the following accounts with normal balances.

Cash $ 9,440
Office Supplies 500
Equipment 3,000
Accounts Payable 500
Notes Payable 2,000
Maria Sanchez, Capital 8,000
Lawncare Revenue 3,200
Gas and Oil Expense 210

Required: Prepare a balance sheet and income statement for this business at the end of May.

Problem #3 Below are accounts listed for September for PC Partners, a company that installs/repairs home computers for customers. The business is owned by Ed Connor. The accounts are listed in alphabetical order. For the month of September, prepare an income statement and a balance sheet.

ACCOUNT BALANCE

Accounts Payable 4,200

Accounts Receivable 8,480

Advertising expense 420

Capital (Ed Connor) at 08/31/04 56,000

Cash 35,460

Entertainment Expense 600

Equipment 15,700

Installation Revenue 15,600

Miscellaneous Revenue 800

Photocopying Expense 150

Rent Expense 1,300

Repair Revenue 8,650

Supplies 8,400

Truck 8,500

Unearned Revenue 760

At the end of the accounting period, the business had $4,500 of office supplies on hand. At the beginning of the period, the amount of supplies on hand was $3,000. If the business purchased $12,000 of office supplies during the year, what amount of office supplies were used during year?

$16,500
$14,250
$10,500
$ 9,750
None of the above

Zach LLP wrote a check to pay an advertising bill for services for the next month. What is the entry?
1. Debit Loan Note Payable, Credit Cash
2. Debit Cash, Credit Account Payable
3. Debit Prepaid Advertising, Credit Cash
4. Debit Cash, Credit Advertising Expense