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Week One Exercise Assignment Basic Accounting Equations 1. Basic concepts. Jean 's Marine Supply specializes in the sale of boating equipment and accessories. Identify the items that follow as an asset (A), liability (L), revenue (R), or expense (E) from the firm 's viewpoint. a. A b. E c. L d. A e. R f. A g. A h. E 2. Basic computations. The following selected balances were extracted from the accounting records of Rossi Enterprises on December 31, 20X3: Accounts Payable \$3,200 Interest Expense \$2,500 Accounts Receivable 14,800 Land 18,000 Auto Expense 1,900 Loan Payable 40,000 Building 30,000 Tax Expense 3,300 Cash 7,400 Utilities Expense 4,100…show more content…
Determine the cost of the company’s land by preparing a trial balance. (Remember, the trial balance debits must equal the credits, see Exhibit 2.9) Assets b. Determine the firm’s net income for the period ending March 31. 9. Entry and trial balance preparation. Lee Adkins is a portrait artist. The following schedule represents Lee’s combined chart of accounts and trial balance as of May 31. Account number Account name Debit Credit 110 | Cash | \$ 2,700 | | 120 | Accounts Receivable | 12,100 | | 130 | Equipment and Supplies | 2,800 | | 140 | Studio | 45,000 | | 210 | Accounts Payable | | \$2,600 | 310 | Lee Adkins, Owners Equity | | 57,400 | 320 | Lee Adkins, Drawing | 30,000 | | 410 | Revenue | | 39,000 | 510 | Advertising Expense | 2,300 | | 520 | Salaries Expense | 2,100 | | 540 | Utilities Expense | 2,000 | | | \$99,000 | \$99,000 | The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June: 6/2: | Collected \$7,500 on account from customers. | 6/7: | Sold 25% of the equipment and supplies to a young artist for \$700 for cash | 6/10: | Received a \$500 bill from the accountant for preparing last quarter’s financial