Start by reading and following these instructions:
1. Quickly skim the questions or assignment below and the assignment rubric to help you focus.
2. Read the required chapter(s) of the textbook. Some answers may require you to do additional research on the Internet or in other reference sources. Choose your sources carefully.
3. Consider the discussion and the any insights you gained from it.
4. Produce the Assignment submission in a single Microsoft Word or Open Office document. Be sure to cite your sources, use APA style as required, check your spelling.
Assignment:
1. Open Kellog’s 2010 Annual Report. Find the balance sheet and calculate the following: How much did cash increase from 2009 to 2010?
a. Set up an expanded accounting equation spreadsheet using the following accounts:
|
Assets |
Liabilities |
Owner’s Equity |
|
Cash Supplies Computer Shop Equipment Office Equipment |
Accounts Payable |
Freedman, Capital Freedman, Withdrawal Service Revenue Expenses (notate type) |
b. Analyze and record each transaction in the expanded accounting equation.
c. Prepare the financial statements ending July 31 for Sanchez Computer Center.
2. On July 1, 201X, Tony Freedman decided to begin his own computer service business. He named the business the Sanchez Computer Center. During the first month Tony conducted the following business transactions. Record them into the basic accounting equation.
a. Invested $4,500 of his savings into the business.
b. Paid $1,200 (check #8095) for the computer from Multi Systems, Inc.
c. Paid $600 (check #8096) for office equipment from Office Furniture, Inc.
d. Set up a new account with Office Depot and purchased $250 in office supplies on credit.
e. Paid July rent, $400 (check #8097).
f. Repaired a system for a customer and collected $250.
g. Collected $200 for system upgrade labor charge from a customer.
h. Electric bill due but unpaid, $85.
i. Collected $1,200 for services performed on Taylor Golf computers.
j. Withdrew $100 (check #8098) to take his wife, Carol, out in celebration of opening the new business.
3. Mike Ackerman decided to open Mike’s Nail Spa. Mike completed the following transactions. Record them into the basic accounting equation.
a. Invested $24,000 cash from his personal bank account into the business.
b. Bought store equipment for cash, $3,700.
c. Bought additional store equipment on account, $6,100.
d. Paid $900 cash to partially reduce what was owed from transaction c.
4. From the following account balances, prepare in proper form for September (a) an income statement, (b) a statement of owner’s equity, and (c) a balance sheet for Frechette Realty.
Cash $7,050 S. Frechette, Withdrawals $800
Accounts Receivable 1,060 Professional Fees 4,000
Office Equipment 6,700 Salaries Expense 400
Accounts Payable 2,000 Utilities Expense 360
S. Frechette, Capital, September 1, 201X 10,770 Rent Expense 400
