Cost Controls and Budgeting The High Corporation was formed on April one of the current year. The company is involved in the excavating business. Part 1 April 1 April 1 April 1 Purchased with cash-excavating equipment for $10,000. April 1 Purchased a two-year liability insurance premium for $3,264. Paid cash. 1. Complete the transaction data for each transaction listed in the exercise documenting the following under each transaction: names of accounts, type of accounts (Asset, Liability, Equity, Revenue, Expense), as a result of the transaction did the accounts increase or decrease (+/-), and the amount. Use the first transaction as a model for all subsequent transactions. Transaction data that is provided for you is correct and should not be changed. April 10 Purchased office supplies for $1,240 on account. April 12 Purchased a used bulldozer for $3,700 cash. April 14 Paid $2,400 to rent a warehouse for one year. 2. As you work through the transactions, ask yourself these four questions. They will help in figuring out where to put the data. - What are the accounts? (REMEMBER: Double entry accounting requires that at least two accounts are impacted in every transaction). Consult column 2 on the Chart of Accounts. April 15 Paid Jones Construction Company $7,000 for a building to be used as an office. Cash Asset - What type of accounts are they? Consult column 1 on the Chart of Accounts Building Asset + $7,000 $7,000 - As a result of this transaction is there more of this account or less? How much of this account was there prior to this transaction? April 16 Paid the employee salaries of $4,000. - By how much? The corporation is organized by selling stock for $50,000. Cash Asset Common stock Equity $50,000 $50,000 Purchased a parcel of land for $8,000. Paid $1,000 in cash and issued a promissory note for the balance. April 21 Paid $750 for advertising incurred during April. April 17 Billed Powers Construction $8,000 for excavating work performed in April. April 18 Received $13,000 from Settle Contractors Inc. for excavating work performed earlier in the month. Cash Asset Exc. Revenue Revenue $13,000 $13,000 April 19 Paid $2,000 on the note payable signed on April 1. April 22 Received a check from Powers Construction for $1,800 for work completed in April. April 23 Received a bill for utilities from Bonneville Power Company for $200. Bill to be paid in May. Accounts Payable Utilities Expense Liabilities Expenses $200 $200 April 25 Paid Amoco Oil Company bill for $1,200 for gasoline used during April. April 26 Billed Toronto Contractors Inc. $7,500 for work performed in April. April 27 Paid $1,300 for repairs made on the bulldozer. April 30 Recognized insurance expense for the month of April. April 30 Recognized the salary expense of $3,800. These salaries are to be paid in May. April 30 Remaining office supplies amount is $400. April 30 Recognized a portion of the prepaid rent on the warehouse.