ACCT 201

FA 21
Chapter 2
Practice Homework Name: Thomas Termote

Ex 2-9

Following are the transactions of a new company called Pose-for-Pics.

August 20 The company received $3,331 cash from taking photos for customers.

August 31 The company paid $675 cash for August utilities.

o Date General Journal Debit Credit

1 August 01 Cash 6500

Equipment 33500

Capital 40000

2 August 02 Prepaid insurance 2100

Cash 2100

3 August 05 Supplies 880

Cash 880

4 August 20 Cash 3331

Revenue 3331

5 August 31 Cash 625

Utilities 625

Use the following information for the Quick Studies below.

Lawson Consulting, which began operations on December 1, had the following accounts and
amounts on December 31. The I. Lawson, Capital account balance at December 1 was $0 and the
owner invested $10,500 cash in the company on December 2. On December 31, the company’s
accounts and amounts for the month of December are shown in the table below:
 
Cash A $ 5,000 I. Lawson, Withdrawals OE $ 1,500
Account’s receivable A 4,500 Services revenue R 12,000
Equipment A 6,500 Rent expense G 2,000
Accounts payable L 3,000 Wage’s expense E 6,000
I. Lawson, Capital OE 10,500   

QS 2-15 (Static) Preparing an income statement LO P1

Use the above information to prepare a June income statement for the business.

LAWSON CONSULTING
Income Statement
For Month Ended December 31
Revenues
Services revenue 12000
Ex
QS 2-16 (Static) Preparing a statement of owner's equity LO P1
Use the above information to prepare a December statement of owner's equity for Lawson
Consulting. Hint: Net income for December is $4,000.
LAWSON CONSULTING

Statement of Owner’s Equity

For Month Ended December 31

I. Lawson, Capital, December 1 0

Add: investment by owner 10500

Less: Withdraw by owner 1500

I. Lawson, Capital, December 31 13000

QS 2-17 (Static) Preparing a balance sheet LO P1

Use the above information to prepare a December 31 balance sheet for Lawson
Consulting. Hint: The ending I. Lawson, Capital account balance as of December 31 is $13,000.
LAWSON CONSULTING
Balance Sheet
As of December 31
Assets: Liabilities:
Cash 5000 Accounts payable 3000
Accounts receivable 4500
Equiment 6500 Equity:
I. Lawson, Capital* 13000

Total equity
Total Assets 16000 Total Liabilities and Equity 16000$

Problem 2-1A Preparing and posting journal entries; preparing a trial balance
Karla Tanner opens a Web consulting business called Linkworks and completed the following
transactions in its first month of operations.
  

 April  1 Tanner invested $80,000 cash along with office equipment valued at $26,000 in the
company.

   2 The company prepaid $9,000 cash for 12 months’ rent for office space. Hint: Debit
Prepaid Rent for $9,000.
   3 The company made credit purchases for $8,000 in office equipment and $3,600 in
office supplies. Payment is due within 10 days.
   6 The company completed services for a client and immediately received $4,000 cash.
   9 The company completed a $6,000 project for a client, who must pay within 30 days.
   1 The company paid $11,600 cash to settle the account payable created on April 3.
3
   1 The company paid $2,400 cash for the premium on a 12-month insurance policy. Hint:
9 Debit Prepaid Insurance for $2,400.
   2 The company received $4,400 cash as partial payment for the work completed on April
2 9.
   2 The company completed work for another client for $2,890 on credit.
5
    2 Tanner withdrew $5,500 cash from the company for personal use.
8
    2 The company purchased $600 of additional office supplies on credit.
9
   3 The company paid $435 cash for this month’s utility bill.
0

  
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash
(101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent
(131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner,