Summary ACCT 211 Connect Homework Chapter 2 Exercises Liberty University answers complete solutions (2 versions)(latest 2022/2023) You'll get 1 XLSX Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, inves

ACCT 211 Connect Homework Chapter 2 Exercises Liberty University answers complete solutions (2 versions)(latest 2022/2023) You'll get 1 XLSX Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $11,500 cash and $49,450 of photography equipment in the company in exchange for common stock. 2 The company paid $2,800 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,185 cash. 20 The company received $2,800 cash in photography fees earned. 31 The company paid $866 cash for August utilities. Prepare general journal entries for the above transactions. Date General Journal Debit Credit Aug 01 Cash 11,500 Photography equipment 49,450 Common stock 60,950 Aug 02 Prepaid insurance 2,800 Cash 2,800 Aug 05 Office supplies 2,185 Cash 2,185 Aug 20 Cash 2,800 Photography fees earned 2,800 Aug 31 Utilities expense 866 Cash 866 'The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $16,000 cash in the company in exchange for common stock. b. The company purchased office supplies for $464 cash. c. The company purchased $8,848 of office equipment on credit. d. The company received $1,888 cash as fees for services provided to a customer. e. The company paid $8,848 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,392 as fees for services provided. g. The company paid $520 cash for the monthly rent. h. The company collected $1,425 cash as partial payment for the account receivable created in transaction f. i. The company paid $1,000 cash in dividends to the owner (sole shareholder). Prepare the Trial Balance. ________________________________________ A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year $ 72,500 $ 31,081 End of the year 118,000 47,790 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $800 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $800 cash per month, and the owner invested an additional $25,000 cash in exchange for common stock. Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.) a. b. c. d. Beginning of the year—Equity $41,419 $41,419 $41,419 $41,419 Owner investments 0 0 45,000 25,000 Less dividends 0 (9,600) 0 (9,600) Net income (loss) 28,791 38,391 (16,209) 13,391 End of the year—Equity $70,210 $70,210 $70,210 $70,210 a. Net income $ 28,791 Plus owner investments 0 Less dividends (0 ) ________________________________________ ________________________________________ ________________________________________ Change in equity $ 28,791 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Since there were no additional investments or dividends, the net income for the year equals the net increase in equity. b. Net income $ 38,391 Plus owner investments 0 Less dividends ($800/mo. × 12 mo.) (9,600 ) ________________________________________ ________________________________________ ________________________________________ Change in equity $ 28,791 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The dividends were added back because they reduced equity without reducing net income. c. Net income $ (16,209 ) Plus owner investments 45,000 Less dividends (0 ) ________________________________________ ________________________________________ ________________________________________ Change in equity $ 28,791 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The investment was deducted because it increased equity without creating net income. d. Net income $ 13,391 Plus owner investments 25,000 Less dividends ($800/mo. × 12 mo.) (9,600) ________________________________________ ________________________________________ Change in equity $ 28,791 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The dividends were added back because they reduced equity without reducing net income and the investments were deducted because they increased equity without creating net income. [The following information applies to the questions displayed below. Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August. Cash $ 25,420 Consulting fees earned $ 27,070 Accounts receivable 22,430 Rent expense 9,630 Office supplies 5,330 Salaries expense 5,670 Land 44,070 Telephone expense 950 Office equipment 20,080 Miscellaneous expenses 570 Accounts payable 10,550 Common stock 102,600 Dividends 6,070 ________________________________________ Use the above information to prepare an August income statement for the business. HELP TODAY Income Statement For Month Ended August 31 Revenues: Consulting fees earned $27,070 Total Revenues $27,070 Expenses: Rent expense $9,630 Salaries expense 5,670 Telephone expense 950 Miscellaneous expenses 570 Total Expenses 16,820 Net income $10,250 Use the above information to prepare an August statement of retained earnings for Help Today. (The owner invested $102,600 cash in the company on August 1.) HELP TODAY Statement of Retained Earnings For Month Ended August 31 Retained earnings, July 31 Add: Net income 10,250 10,250 Less: Dividends 6,070 Retained earnings, August 31 $4,180 Use the above information to prepare an August 31 balance sheet for Help Today. (The owner invested $102,600 cash in the company on August 1 in exchange for common stock.) HELP TODAY Balance Sheet As of August 31 Assets: Liabilities: Cash $25,420 Accounts payable $10,550 Accounts receivable 22,430 Office supplies 5,330 Equity: Office equipment 20,080 Common stock 102,600 Land 44,070 Retained earnings 4,180 Total Assets $117,330 Total Liabilities and Equity $117,330 Statement of Retained Earnings For Month Ended August 31 Retained earnings, July 31 $ 0 Add: Net income 10,250 ________________________________________ ________________________________________ 10,250 Less: Dividends 6,070 ________________________________________ ________________________________________ Retained earnings, August 31 $ 4,180 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Compute the missing amount for each of the following separate companies a through d. (Losses and amounts to be deducted should be indicated with a minus sign.) (a) (b) (c) (d) Equity, December 31, 2014 $0 $0 $0 $0 Owner investments for stock during the year 111,500 106,000 99,693 222,353 Dividends during the year (105,500) (53,000) (9,000) (55,000) Net income (loss) for the year 107,500 57,095 (5,000) (45,000) Equity, December 31, 2015 $113,500 $110,095 $85,693 $122,353 Chapter 2 Problems Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invests $120,000 cash along with office equipment valued at $28,800 in the company in exchange for common stock. 2 The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) 3 The company made credit purchases for $14,400 in office equipment and $2,880 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $2,000 cash. 9 The company completed a $9,600 project for a client, who must pay within 30 days. 13 The company paid $17,280 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) 22 The company received $7,680 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 on credit. 28 The company paid $6,200 cash in dividends. 29 The company purchased $960 of additional office supplies on credit. 30 The company paid $700 cash for this month's utility bill. 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); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). Date General Journal Debit Credit April 01 Cash 120,000 Office equipment 28,800 Common stock 148,800 April 02 Prepaid rent 7,200 Cash 7,200 April 03 Office equipment 14,400 Office supplies 2,880 Accounts payable 17,280 April 06 Cash 2,000 Services revenue 2,000 April 09 Accounts receivable 9,600 Services revenue 9,600 April 13 Accounts payable 17,280 Cash 17,280 April 19 Prepaid insurance 6,000 Cash 6,000 April 22 Cash 7,680 Accounts receivable 7,680 April 25 Accounts receivable 2,640 Services revenue 2,640 April 28 Dividends 6,200 Cash 6,200 April 29 Office supplies 960 Accounts payable 960 April 30 Utilities expense 700 Cash 700 2. Open the following ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts. (Do not skip lines, Enter transactions in chronological order.) 101: Cash Date Debit Credit Balance April 01 120,000 120,000 April 02 7,200 112,800 April 06 2,000 114,800 April 13 17,280 97,520 April 19 6,000 91,520 April 22 7,680 99,200 April 28 6,200 93,000 April 30 700 92,300 106: Accounts Receivable Date Debit Credit Balance April 09 9,600 9,600 April 22 7,680 1,920 April 25 2,640 4,560 124: Office Supplies Date Debit Credit Balance April 03 2,880 2,880 April 29 960 3,840 128: Prepaid Insurance Date Debit Credit Balance April 19 6,000 6,000 131: Prepaid Rent Date Debit Credit Balance April 02 7,200 7,200 163: Office Equipment Date Debit Credit Balance April 01 28,800 28,800 April 03 14,400 43,200 201: Accounts Payable Date Debit Credit Balance April 03 17,280 17,280 April 13 17,280 0 April 29 960 960 307: Common Stock Date Debit Credit Balance April 01 148,800 148,800 403: Services Revenue Date Debit Credit Balance April 06 2,000 2,000 April 09 9,600 11,600 April 25 2,640 14,240 319: Dividends Date Debit Credit Balance April 28 6,200 6,200 690: Utilities Expense Date Debit Credit Balance April 30 700 700 3. Prepare a trial balance as of April 30. LINKWORKS Trial Balance April 30 Debit Credit Cash $92,300 Accounts receivable 4,560 Office supplies 3,840 Prepaid insurance 6,000 Prepaid rent 7,200 Office equipment 43,200 Accounts payable 960 Common stock 148,800 Dividends 6,200 Services revenue 14,240 Utilities expense 700 Total $164,000 $164,000 [The following information applies to the questions displayed below.] Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following transactions in March. March 1 Brooks invested $175,000 cash along with $26,000 in office equipment in the company in exchange for common stock. 2 The company prepaid $6,500 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $6,500.) 3 The company made credit purchases of office equipment for $3,000 and office supplies for $1,100. Payment is due within 10 days. 6 The company completed services for a client and immediately received $6,000 cash. 9 The company completed a $9,700 project for a client, who must pay within 30 days. 12 The company paid $4,100 cash to settle the account payable created on March 3. 19 The company paid $5,800 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,800.) 22 The company received $3,200 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $4,570 on credit. 29 The company paid $6,900 cash in dividends. 30 The company purchased $1,700 of additional office supplies on credit. 31 The company paid $1,100 cash for this month's utility bill. 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); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). Date General Journal Debit Credit Mar 01 Cash 175,000 Office equipment 26,000 Common stock 201,000 Mar 02 Prepaid rent 6,500 Cash 6,500 Mar 03 Office equipment 3,000 Office supplies 1,100 Accounts payable 4,100 Mar 06 Cash 6,000 Services revenue 6,000 Mar 09 Accounts receivable 9,700 Services revenue 9,700 Mar 12 Accounts payable 4,100 Cash 4,100 Mar 19 Prepaid insurance 5,800 Cash 5,800 Mar 22 Cash 3,200 Accounts receivable 3,200 Mar 25 Accounts receivable 4,570 Services revenue 4,570 Mar 29 Dividends 6,900 Cash 6,900 Mar 30 Office supplies 1,700 Accounts payable 1,700 Mar 31 Utilities expense 1,100 Cash 1,100 2. Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts. 101: Cash Date Debit Credit Balance Mar 1 175,000 175,000 Mar 2 6,500 168,500 Mar 6 6,000 174,500 Mar 12 4,100 170,400 Mar 19 5,800 164,600 Mar 22 3,200 167,800 Mar 29 6,900 160,900 Mar 31 1,100 159,800 106: Accounts Receivable Date Debit Credit Balance Mar 9 9,700 9,700 Mar 22 3,200 6,500 Mar 25 4,570 11,070 124: Office Supplies Date Debit Credit Balance Mar 3 1,100 1,100 Mar 30 1,700 2,800 128: Prepaid Insurance Date Debit Credit Balance Mar 19 5,800 5,800 131: Prepaid Rent Date Debit Credit Balance Mar 2 6,500 6,500 163: Office Equipment Date Debit Credit Balance Mar 1 26,000 26,000 Mar 3 3,000 29,000 201: Accounts Payable Date Debit Credit Balance Mar 3 4,100 4,100 Mar 12 4,100 0 Mar 30 1,700 1,700 307: Common Stock Date Debit Credit Balance Mar 1 201,000 201,000 403: Services Revenue Date Debit Credit Balance Mar 6 6,000 6,000 Mar 9 9,700 15,700 Mar 25 4,570 20,270 319: Dividends Date Debit Credit Balance Mar 29 6,900 6,900 690: Utilities Expense Date Debit Credit Balance Mar 31 1,100 1,100 3. Prepare a trial balance as of the end of March. VENTURE CONSULTANTS Trial Balance March 31 Debit Credit Cash $159,800 Accounts receivable 11,070 Office supplies 2,800 Prepaid insurance 5,800 Prepaid rent 6,500 Office equipment 29,000 Accounts payable 1,700 Common stock 201,000 Dividends 6,900 Services revenue 20,270 Utilities expense 1,100 Totals $222,970 $222,970 Business transactions completed by Hannah Venedict during the month of September are as follows. a. Venedict invested $88,000 cash along with office equipment valued at $23,000 in exchange for common stock of a new company named HV Consulting. b. The company purchased land valued at $50,000 and a building valued at $165,000. The purchase is paid with $30,000 cash and a long-term note payable for $185,000. c. The company purchased $1,800 of office supplies on credit. d. Venedict invested her personal automobile in the company in exchange for more common stock. The automobile has a value of $16,600 and is to be used exclusively in the business. e. The company purchased $5,500 of additional office equipment on credit. f. The company paid $1,600 cash salary to an assistant. g. The company provided services to a client and collected $7,200 cash. h. The company paid $640 cash for this month's utilities. i. The company paid $1,800 cash to settle the account payable created in transaction c. j. The company purchased $20,300 of new office equipment by paying $20,300 cash. k. The company completed $6,000 of services for a client, who must pay within 30 days. l. The company paid $1,600 cash salary to an assistant. m. The company received $3,500 cash in partial payment on the receivable created in transaction k. n. The company paid $2,600 cash in dividends. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). Transaction General Journal Debit Credit a. Cash 88,000 Office equipment 23,000 Common stock 111,000 b. Land 50,000 Building 165,000 Cash 30,000 Notes payable 185,000 c. Office supplies 1,800 Accounts payable 1,800 d. Automobiles 16,600 Common stock 16,600 e. Office equipment 5,500 Accounts payable 5,500 f. Salaries expense 1,600 Cash 1,600 g. Cash 7,200 Fees earned 7,200 h. Utilities expense 640 Cash 640 i. Accounts payable 1,800 Cash 1,800 j. Office equipment 20,300 Cash 20,300 k. Accounts receivable 6,000 Fees earned 6,000 l. Salaries expense 1,600 Cash 1,600 m. Cash 3,500 Accounts receivable 3,500 n. Dividends 2,600 Cash 2,600 2. Open the following ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts. 101: Cash Transaction Debit Credit Balance a. 88,000 88,000 b. 30,000 58,000 f. 1,600 56,400 g. 7,200 63,600 h. 640 62,960 i. 1,800 61,160 j. 20,300 40,860 l. 1,600 39,260 m. 3,500 42,760 n. 2,600 40,160 201: Accounts Payable Transaction Debit Credit Balance c. 1,800 1,800 e. 5,500 7,300 i. 1,800 5,500 250: Notes Payable Transaction Debit Credit Balance b. 185,000 185,000 106: Accounts Receivable Transaction Debit Credit Balance k. 6,000 6,000 m. 3,500 2,500 108: Office Supplies Transaction Debit Credit Balance c. 1,800 1,800 307: Common Stock Transaction Debit Credit Balance a. 111,000 111,000 d. 16,600 127,600 319: Dividends Transaction Debit Credit Balance n. 2,600 2,600 163: Office Equipment Transaction Debit Credit Balance a. 23,000 23,000 e. 5,500 28,500 j. 20,300 48,800 164: Automobiles Transaction Debit Credit Balance d. 16,600 16,600 402: Fees Earned Transaction Debit Credit Balance g. 7,200 7,200 k. 6,000 13,200 601: Salaries Expense Transaction Debit Credit Balance f. 1,600 1,600 l. 1,600 3,200 170: Building Transaction Debit Credit Balance b. 165,000 165,000 172: Land Transaction Debit Credit Balance b. 50,000 50,000 602: Utilities Expense Transaction Debit Credit Balance h. 640 640 3. Prepare a trial balance as of the end of September. HV CONSULTING Trial Balance September 30 Debit Credit Cash $40,160 Accounts receivable 2,500 Office supplies 1,800 Office equipment 48,800 Automobiles 16,600 Building 165,000 Land 50,000 Accounts payable 5,500 Notes payable 185,000 Common stock 127,600 Dividends 2,600 Fees earned 13,200 Salaries expense 3,200 Utilities expense 640 Totals $331,300 $331,300 [The following information applies to the questions displayed below.] The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2014 and 2015. December 31 2014 2015 Cash $ 51,084 $ 9,307 Accounts receivable 27,729 21,740 Office supplies 4,374 3,204 Office equipment 134,271 143,024 Trucks 52,542 61,542 Building 0 175,153 Land 0 43,707 Accounts payable 72,900 36,156 Note payable 0 118,860 ________________________________________ Late in December 2015, the business purchased a small office building and land for $218,860. It paid $100,000 cash toward the purchase and a $118,860 note payable was signed for the balance. Mr. Nettle had to invest $32,000 cash in the business (in exchange for common stock) to enable it to pay the $100,000 cash. The business also pays $3,500 cash per month for dividends. Required: 1. Prepare balance sheets for the business as of December 31, 2014 and 2015. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.) NETTLE DISTRIBUTION Balance Sheet December 31, 2014 Assets Liabilities Cash $51,084 Accounts payable $72,900 Accounts receivable 27,729 Office supplies 4,374 Trucks 52,542 Equity Office equipment 134,271 Total equity 197,100 Total assets $270,000 Total liabilities and equity $270,000 NETTLE DISTRIBUTION Balance Sheet December 31, 2015 Assets Liabilities Cash $9,307 Accounts payable $36,156 Accounts receivable 21,740 Note payable 118,860 Office supplies 3,204 Trucks 61,542 Office equipment 143,024 Total liabilities 155,016 Building 175,153 Equity Land 43,707 Total equity 302,661 Total assets $457,677 Total liabilities and equity $457,677 2. By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2015. Equity, December 31, 2014 $197,100 Add: Stock issuances 32,000 Add: Net income 115,561 344,661 Less: Dividends (42,000) Equity, December 31, 2015 $302,661 Explanation: 2. Withdrawals ($3,500 × 12) = $42,000 Net income = ($105,561 $42,000 – $32,000) = $115,561 NETTLE DISTRIBUTION Balance Sheet December 31, 2014 Assets Cash $ 51,084 Accounts receivable 27,729 Office supplies 4,374 Trucks 52,542 Office equipment 134,271 Total Assets $ 270,000 Liabilities Accounts payable $ 72,900 Equity Total equity $ 197,100 Total Liabilities & Equity $ 270,000 NETTLE DISTRIBUTION Balance Sheet December 31, 2015 Assets Cash $ 9,307 Accounts receivable 21,740 Office supplies 3,204 Trucks 61,542 Office equipment 143,024 Building 175,153 Land 43,707 Total Assets $ 457,677 Liabilities Accounts payable $ 36,156 Note payable 118,860 Total Liabilities $ 155,016 Equity Total equity 302,661 Total Liabilities and Equity $ 457,677 3. Compute the 2015 year-end debt ratio for the business. Debt Ratio Choose Numerator: / Choose Denominator: = Debt Ratio Total liabilities / Total assets = Debt ratio $155,016 / $457,677 = 33.87% Explanation: 3. Debt ratio = $155,016 / $457,677 = 33.87% [The following information applies to the questions displayed below.] Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $18,500 cash. After those seven transactions, the ledger included the following accounts with normal balances. Required: 1. Prepare a trial balance for this business as of the end of May. MIN ENGINEERING Trial Balance May 31 Debit Credit Cash $44,256 Office supplies 970 Prepaid insurance 4,700 Office equipment 13,800 Accounts payable 13,800 Common stock 18,500 Dividends 3,104 Engineering fees earned 42,000 Rent expense 7,470 Totals $74,300 $74,300 3. Prepare a report of cash received and cash paid showing an ending Cash balance of $44,256. (Hint: Analyze the accounts and their balances and prepare a list that describes each of the seven most likely transactions and their amounts.) Report of Cash Received and Paid Cash received Owner investment $18,500 Engineering fees $42,000 Total cash received $60,500 Cash paid Office supplies 970 Insurance premium 4,700 Dividends 3,104 Rent 7,470 Total cash paid 16,244 Ending balance $44,256