Remote Assignement 2

Damone Davis opens a web development business. He names the business 3D Web Design. He opens a bank account and during the first month he has the following transactions:

A- He deposits $3000 in the account of the business from his personal money.

B -He also takes a $5000 loan from his uncle Marcus which he deposits in the account.

C -He purchases a new Macbook Pro for $2400 and pays cash.

D -He buys an HP printer for $300 for which he also pays cash.

F -Damone completes a web page for his first client and receives a payment of $900.

F -He goes to Office Depot and buys $200 of office supplies with a company check.

G -He then buys a computer table and chair for $600 and pays cash.

H -He completes another web project and gets paid $1100 which he deposits.

J -He then buys a file cabinet and bookshelf for $400.

K -During the first month he uses up $30 of office supplies.

L -At the end of the month he withdraws $200 cash to pay himself.

Damone's Assets include, cash, computer equipment, office furniture, and office supplies, he also has Liabilities. He has contributed Capital to Owners Equity. Damone made a withdrawal from Owners equity too. He earned Revenue which increases OE and incurred Expenses which decreases OE. Based on this information answer the following questions:

1- How much did he increase cash during the first month?

a) 12000b) 10,000c) 8900 d) 9100

2- How much did he decrease cash during the first month?

a) 4100b) 3300c) 2400 d) 5500

3- How much cash does he have at the end of the month? ____________ 5900

4- What is the value of the office supplies he purchased, less those he used up? ____________ 170

5- What is the value of all of the remaining assets combined, including cash, at the end of the month?

a) 5900b) 6500c) 6070 d) 7060

6- How much did he increase liabilities during the month? ___________

7- How much revenue did he earn during the month? ____________

8- How much were his expenses during the month? ____________

9- If you subtract his expenses from his revenue, how much did he actually earn in the first month?

10 What is the total of his Assets, ______________ Liabilities, _______________

and Owners Equity___________ Does it Balance?

I -He subscribes to Verizon Fios and pays for the first month service of $120 in cash.