ACC 290 Week 2 Latest Exercises Material ( A + Grade )
Question 1
A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operations is shown below. Each increase and decrease in stockholders’ equity is explained.
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Assets |
= |
Liabilities |
+ |
Stockholders’ Equity |
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Cash |
+ |
Accounts Receivable |
+ |
Supplies |
+ |
Office Equipment |
= |
Accounts Payable |
+ |
Common Stock |
+ |
Retained Earnings |
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Rev. |
- |
Exp. |
- |
Div. |
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| 1. |
$20,000 |
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$20,000 |
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Com. Stock |
| 2. |
-1,000 |
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$5,000 |
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$4,000 |
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| 3. |
-750 |
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$750 |
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| 4. |
4,400 |
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$5,400 |
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$9,800 |
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Serv. Rev |
| 5. |
-1,500 |
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-1,500 |
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| 6. |
-2,000 |
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-2,000 |
Div. |
| 7. |
-800 |
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-800 |
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Rent Exp. |
| 8. |
450 |
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-450 |
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| 9. |
-3,000 |
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-3,000 |
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Sal. Exp. |
| 10. |
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500 |
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-500 |
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Util. Exp. |
Determine how much stockholders’ equity increased for the month.
$3,500
Compute the net income for the month.
$5,500
| Question 2
This information relates to Pickert Real Estate Agency.
Post the transactions to T-accounts and complete the following trial balance. (If answer is zero, please enter 0, do not leave any fields blank.)
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