Week One Assignment

Using the Excel workbook provided, identify the accounts affected in the sample business transactions. Be careful to identify the correct increase/decrease accounts! Use the proper account names from the list provided in the template.

WEEK 1: ANALYZING TRANSACTIONS Instructions: Using the accounts listed below, identify the account affected given the increase and decrease information. (10 points each for a total of 120 points) Account classifications and official account names: Liabilities Revenue Assets Accounts Payable Fees Income Cash Accounts Receivable Owner's Equity Expenses Supplies J. Jones, Capital Utilities Expense Prepaid Rent J. Jones, Drawing Rent Expense Computer Equipment Salaries Expense Office Equipment EXAMPLE: Issue a check to pay the current month's rent. Account Increased Account Decreased Rent Expense Cash 1. Starting the business: The owner invests their personal cash savings into the business. Account Increased Account Increased 2. Issue a check to purchase supplies. Account Increased Account Decreased 3. Purchase computer equipment on account (also considered "on credit) due in 30 days. Account Increased Account Increased 4. Issue a check to purchase office equipment. Account Increased Account Decreased 5. Issue a check to prepay future month's rent. Account Increased Account Decreased 6. Issue a check to pay on account due from transaction 3. Account Decreased Account Decreased 7. Perform services for cash clients who pay immediately. Account Increased Account Increased 8. Perform services to charge account clients who will pay in 60 days. Account Increased Account Increased 9. Issue a check to pay the current month's utility bill. Account Increased Account Decreased 10. Receive payment from charge account clients. Account Increased Account Decreased 11. Issue a check to pay the current month's salaries. Account Increased Account Decreased 12. Issue a check to J. Jones, the owner, as a draw for personal use. Account Increased Account Decreased EXTRA CREDIT: Compound Transactions (5 points each) Issue a check to pay the current month's rent and to prepay 2 future month's rent. Account Increased Account Increased Account Decreased Purchase computer equipment issuing a check for half of the amount due and the balance payable in 30 days Account Increased Account Increased Account Decreased