Financial Accounting BMBA $140$ Assignment #$1$

Name $($first and last name$)$: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

PART I $$ Short Answer Exercise $(5$ points or $1$ mark each question$)$

At the beginning of the year, Plug$-$In Company had total assets of $$117,000$ and total liabilities of $$95,000.$

Instructions: Answer the following questions viewing each situation as being independent of the others.

$1.$ If total assets increased $$12,000$ during the year, and total liabilities decreased $$14,000,$ what is the amount of owner's equity at the end of the year?

Owner$$s Equity $=$

$2.$ During the year, total liabilities increased $$34,000$ and owner's equity decreased $$13,000.$ What is the amount of total assets at the end of the year?

Total Assets $=$

$3.$ If total assets decreased $$6,132$ and owner's equity increased $$19,197$ during the year, what is the amount of total liabilities at the end of the year?

Total Liabilities $=$

$4.$ What amount would the Plug$-$In Company need to increase its liabilities by if their ownership group withdrew $$10,000$ cash from their equity account?

Total Liabilities $=$

$5.$ If total liabilities decreased $$16,000$ and owner's equity decreased $$29,000$ during the year, what is the amount of total assets at the end of the year?

Total Assets $=$

PART II $$ JOURNAL ENTRIES $(15$ points$)$

The following ledger accounts are used by Hanson and Sons Company in their ledger.

Instructions: Indicate the appropriate entries for the month of September by placing the appropriate account number$($s$)$ in the debit and credit columns provided. Item $0$ is provided as an example. Write $"$n$/$a$"$ if no entry is appropriate.

$1000$ Cash $2000$ Salaries Payable $4000$ Service Revenue

$1010$ Accounts Receivable $2010$ Accounts Payable $5000$ Equipment Expense

$1020$ Supplies $2020$ Unearned Service Revenue $5010$ Advertising Expense

$1030$ Prepaid Salaries $2030$ Notes Payable $5020$ Supplies Expense

$1040$ Prepaid Advertising $3000$ T$.$ Hanson, Capital $5030$ Rent Expense

$1050$ Equipment $3010$ T$.$ Hanson, Drawings $5040$ Salaries Expense

Entry No$.$ Date Entry Information Account$($s$)$ Debited Account$($s$)$ Credited

$0.$ Sept. $1$ T$.$ Hanson invested $$45,000$ in the business. $10003000$

$1.$ Sept. $3$ Supplies were purchased on account at a cost of $$1,755$ from The Supply Co$.$ These supplies will be used during July.

$2.$ Sept. $3$ Paid $$425$ cash to Facebook for advertisements run this past week.

$3.$ Sept. $5$ Received $$10,000$ from customers for services to be rendered early in July.

$4.$ Sept. $6$ Received $$3,333$ cash from customers to extinguish their outstanding balance.

$5.$ Sept. $8$ Purchased equipment for $$4,000$; a three$-$month, $5\%$ note payable was signed for this amount.

$6.$ Sept. $9$ Hansen agreed to hire C$.$ Kimler as an assistant. They will be paid at the rate of $$4,000$ monthly, receiving $$2,000$ on the $15$th and $30$th of each month. They will begin work September $16.$

$7.$ Sept. $15$ C$.$ Kimler has their first day.

$8.$ Sept. $17$ Hanson withdrew $$1,900$ for personal use.

$9.$ Sept. $19$ Paid a supplier $$2,250$ cash on account.

$10.$ Sept. $21$ T$.$ Hanson invests $$5,000$ in supplies in the business.

$11.$ Sept. $22$ Paid $$425$ cash to Facebook for advertisements to run the first week of October.

$12.$ Sept. $22$ Paid $$3,125$ in cash to Carson Company for September rent.

$13.$ Sept. $28$ Received $$4,989$ from customers for services rendered during the week.

$14.$ Sept. $29$ Billed customers $$6,000$ for services rendered but not collected during September.

$15.$ Sept. $30$ C$.$ Kimler was paid $$2,000$ cash for their salary

PART III $$ JOURNAL ENTRIES $(30$ points$)$

Answers to Part II:

Instructions: Record the appropriate entries for the month of September by completing the following table. Item $0$ is provided as an example. Write $"$n$/$a$"$ if no entry is appropriate.

Entry # Date Account Number Account Name Debit or Credit Amount

$0$ Sept. $11000$ Cash DR $$45,000$

$3000$ T$.$ Hansen, Capital CR $$45,000$

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$