MGA 301 Lecture Notes - Lecture 3: Procter & Gamble, Beverly Crusher, Accounts Payable

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orchidcockroach288

19 Dec 2016

School

University at Buffalo

Department

Management Accounting

Course

MGA 301

Professor

Chen Jing

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Document Summary

Be3-2 agazzi repair shop had the following transactions during the first month of business as a proprietorship. 2 invested ,000 cash and ,500 of equipment in the business. 7 purchased supplies on account for . (debit asset account. ) 12 performed services for clients, for which ,300 was collected in cash and. Be3-3 (l02,3) on july 1, 2017, crowe co. pays ,000 to zubin insurance co. for a. Both companies have fiscal years ending december 31. Crowe co. , journalize the entry on july 1 and the adjusting entry on december 31. Be3-4 (l02,3) using the data in be3-3, journalize the entry on july 1 and the adjusting entry on december 31 for zubin insurance co. zubin uses the accounts. Be3-5 assume that on february 1, procter & gamble (p&g) paid ,000 in advance for 2 years" insurance coverage. Prepare p&g"s february 1 journal entry and the annual adjusting entry on june 30.

Related Questions

Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant âStudentâs name, Certified Public Accountantâ, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:

Aug. 1 The P.C. received $20,000 cash from you, and issued you common stock.

2 Paid monthly office rent, $800

3 Purchased a computer on account for $2,500, with the computer expected to remain in service for five years.

4 Purchased office furniture for cash, $5,000, with the furniture projected to last for five years.

5 Purchased supplies on account, $800.

9 Performed tax service for a client on account, $1,500.

15 Received and paid utility expenses, $350.

20 Preformed consulting services and received cash for the full amount of $1,800.

LO USING EXCEL:

1. Journalize the transaction. Explanations are not required.

2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 20, 2016, as Bal.

3. Prepare a trial balance at August 20, 2016.

Journal

Date

ACCOUNT TITLES AND EXPLANATION

DEBIT

CREDIT

Aug 1

Req. 2
Cash				Accounts Receivable
Aug. 1
				Bal.

Bal.	-

Supplies				Equipment

Bal.				Bal.

Furniture				Accounts Payable


Bal.						Bal.	-

Common Stock				Service Revenue


		Bal.	-			Bal.	-

Rent Expense				Utilities Expense

Bal.	-			Bal.	-

Req. 3
Student's Name, Certified Public Accountant, P.C.
Trial Balance
August 20, 2016
ACCOUNT						DEBIT	CREDIT
Cash
Accounts receivable
Supplies
Equipment
Furniture
Accounts payable
Common stock
Dividends
Service revenue
Rent expense
Utilities expense
Salary expense
Total						$ -	$ -

plumleopard605

At December 31, 2016, the accounting records of Hill Pool, Co.reflected the following:

AccountsPayable $10,100 AccountsReceivable 8,450

RetainedEarnings 7,830 Supplies ` 2,350

Building 23,950 Cash 15,420

Notes Payable, due Jan2018 10,240 CommonStock 20,000

UnearnedRevenue 2,000

During January 2017, the following transactions occurred:

Jan2 Issued 5,000 shares of common stockin exchange for $10,000

Jan8 Paid creditors $2,500 of what wasowed on account.

Jan15 Repaired a pool and collected the fee of$1,800.

Jan19 Performed a $500 repair job, which Hill hadpreviously been paid for.

Jan25 Collected $2,400 from customers on account.

Jan28 Repaired a customerâs pool for$8,200. Billed the customer.

Jan30 Declared and paid a cash dividend of $500.

Jan30 Paid $2,000 for January wages.

Jan30 Supplies on hand at the end of the month amountto $1,300.

Jan30 Received a utility bill for $500 which will bepaid next month.

1. Thejournal entry to record the Jan 19 transaction would include a:

A. Debit to Accounts Receivable

B. Credit to Service Revenue

C. Debit to Service Revenue

D. Credit to Unearned Revenue

E. Credit to Accrued Expenses Payable

2. Torecord the Jan 30 transaction for the supplies, Hill, Incwould:

A. Debit to Supplies Expense for $1,300

B. Debit to Supplies for $1,050

C. Credit to Cash for $1,050

D. Credit to Supplies $1,300

E. Debit to Supplies Expense for $1,050

3. Thebalance in the Cash account on January 31, 2017 is:

A. $24,620

B. $26,320

C. $26,820

D. $25,770

E. $23,570

4. What isnet income for the month of January?

A. $16,350

B. $8,850

C. $6,950

D. $18,350

E. $5,850

limeshark233

I need to journalize these transactions. Trying to keep thesebalanced is difficult, and I've been confused as to what accountsto debit/credit. If you could help me fill this out, that would begreatly appreciated.

For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions duringDecember:

1st AaronJones invested the following assets in the business: cash, $50,000;supplies,

$10,000; and office equipment, $30,000. Mr. Jones received stockin an

amount equal to his investment in the corporation.

2nd Paid $9,000for rent for December 20X1 through February 28, 20X2.

3rd Paid$12,000 for a one year premium on property and casualty insurance.The

policy covers the period December 1, 20X1 to November 30,20X2.

4th Received $16,000 cash from a client as an advance payment forservices to be

performed in the future.

5th Purchased additional office equipment on account from Payne Companyfor $10,000.

10th Paid $7,500 for anewspaper advertisement that ran in todayâs paper.

11th Paid Payne Company$3,000 for part of the debt incurred on December 5.

12th Billed clients forservices performed on account, $5,800.

17th Received cash paymentfrom client for services performed on this date, $14,000.

18th Paid $6,000 forsupplies.

20th Billed clients forservices performed on account, $15,000.

24th Received cash paymentfrom client for services performed on this date, $2,000.

25th Received cash fromclients as payment on account, $3,000.

30th Paid $750 forutilities for December.

31st Paid cash dividend of$5,000.

These are the accounts we have:

PROGRESS CONSULTING: Chart of Accounts

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Rent

17 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Wages Payable

23 Unearned Revenues

31 Common Stock

34 Retained Earnings

35 Dividends

37 Income Summary

41 Service Revenues

51 Insurance Expense

52 Advertising Expense

53 Rent Expense

55 Supplies Expense

57 Depreciation Expense

59 Utilities Expense

60 Wage Expense

Date		Description	Debit	Credit
Dec	1	Cash	50,000
	1	Supplies	10,000
	1	Office Equipment	30,000
	1	Common Stock		90,000
	2

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MGA 301 Lecture Notes - Lecture 3: Procter & Gamble, Beverly Crusher, Accounts Payable

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