Accounting Homework September 16 2014

804 Words Apr 16th, 2015 4 Pages

Toolbox Practice Problem 1
Elaine Consulting incorporated on February 1, 2015. The company engaged in the following transactions during its first month of operations.
Feb. 1 Issued capital stock in exchange for $800,000 cash
Feb. 5 Borrowed $100,000 from the bank by issuing a note payable.
Feb. 8 Purchased land, building, and office equipment for $750,000. The value of the land was $150,000, the value of the building was $540,000, and the value of the office equipment was $60,000. The company paid $200,000 cash and issued a note payable for the balance.
Feb. 11 Purchased office supplies for $800 on account. The supplies will last for several months.
Feb. 14 Paid the local newspaper $500 for a
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The entire amount is due July 30.
July 26 Billed Golf View Condominiums $200 for mowing services. The entire amount is due August 1.
July 30 Collected $150 from Lost Creek Cemetery for mowing services provided on July 25.
July 31 Paid $80 salary to employee Bob Jones for work performed in July.
1. Record each of the above transactions in general journal form. 2. Post each entry to the appropriate ledger accounts (using T-account format)

Toolbox Practice Problem 3
This problem involves making “adjusting entries”. Be familiar with the problem that we will work in class.

Camp Hult adjusts its accounts monthly. Most guest of the campground pay at the time they check out, and the amounts collected are credited to Camper Revenue. The following information is available. a. Camp Hult invests some of its excess cash in certificate of deposit (CD’s) with its local bank. Accrued interest revenue on its CDs at December 31 is $400. None of the interest has yet been received. (debit Interest Receivable) b. A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest to be computed at an annual rate of 8.5 percent and is payable when the loan become due. c. Depreciation on buildings owned by the campground is based on a 25-year life. The original cost of the building was $600,000. The “Accumulated Depreciation: Building” account has a credit balance of $310,000 at December 31, prior to the