impact of business transactions on accounts Assignments Cheap Essay Help
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ACCT504_Case_Study_1_template-2.xls
ACCT504_Case_Study_1_Instructions-3.docx
Case Study 1 (Part A)
(Learning Objectives 4, 5, 6: Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
| June
2 |
Gordon received $55,000 cash and issued common stock to the stockholders. |
| 3 | Purchased supplies, $3,000, and equipment, $5,200, on account. |
| 4 | Performed services for a client and received cash, $6,300. |
| 7 | Paid cash to acquire land, $37,000. |
| 11 | Performed services for a customer and billed the customer, $1,200. Johnson expects to collect within one month. |
| 16 | Paid partial for the equipment purchased June 3 on account $2,800. |
| 17 | Paid the telephone bill, $230. |
| 18 | Received partial payment from customer on account, $700. |
| 22 | Paid the water and electricity bills, $400. |
| 29 | Received $5,000 cash for repairing the pipes of a customer. |
| 30 | Paid employee salary, $4,300. |
| 30 | Declared and paid dividends of $3,000. |
▸Requirements
- 1. Record each transaction in the journal. Key each transaction by date. Explanations are not required.
- 2. Post the transactions to the T-accounts, using transaction dates as posting references.
- 3. Prepare the trial balance of Gordon Construction, Inc., at June30, 2014.
- 4. The manager asks you how much in total resources the business has to work with and, how much it owes.
Case Study 1 (Part B)
Requirement 1
(Learning Objectives 3, 4: Adjust the accounts; construct the financial statements) Record the following month end adjusting entries for Gordon Construction, Inc. at June 30, 2014
Month end accruals at June 30, 2014:
- a. Accrued advertising revenue at June 30, $3,100.
- b. Supplies used during June, $2,300.
- c. Accrued salary expense at June 30 for Monday, Tuesday, and Wednesday. The five-day weekly payroll is $6,100 and will be paid on Friday.
Requirement 2
Prepare adjusted trial balance for Gordon Construction at June 30, 2014.
Solution:
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