ACC 201 Module 1 Quiz Chapters 1 & 2 (2014)

ACC 201 JUNE – AUG 2014 (1))
Assignment:Module 1 – Quiz –
Chapters 1 & 2

1.
award:
10
out of
10.00 points

Answer the following questions. (Hint:Use the accounting equation.)

a.

Office Store has assets equal to
$253,000 and liabilities equal to $221,000 at year-end. What is the total
equity for Office Store at year-end?

b.

At the beginning of the year,
Addison Company’s assets are $152,000 and its equity is $114,000. During the
year, assets increase $80,000 and liabilities increase $59,000. What is the
equity at the end of the year?

c.

At the beginning of the year,
Quaker Company’s liabilities equal $41,000. During the year, assets increase
by $60,000, and at year-end assets equal $190,000. Liabilities decrease $12,000
during the year. What are the beginning and ending amounts of equity?

2.On October 1, Keisha King organized Real Answers, a new
consulting firm; On October 3, the owner contributed $67,210 cash. On October
31, the company’s records show the following items and amounts.

Cash

$

10,000

Cash dividends

$

2,000

Accounts receivable

12,000

Consulting fees earned

14,000

Office supplies

21,250

Rent expense

2,520

Land

46,000

Salaries expense

5,600

Office equipment

18,000

Telephone expense

760

Accounts payable

37,500

Miscellaneous expenses

580

Common stock

67,210

Using the above information
prepare an October income statement for the business.

3.On October 1, Keisha King organized Real Answers, a new
consulting firm; on October 3, the owner contributed $73,413 cash. On October
31, the company’s records show the following items and amounts.

Cash

$

2,250

Cash dividends

$

3,360

Accounts receivable

12,000

Consulting fees earned

14,000

Office supplies

4,781

Rent expense

2,520

Land

36,000

Salaries expense

5,600

Office equipment

28,000

Telephone expense

660

Accounts payable

8,438

Miscellaneous expenses

680

Common stock

73,413

4.Following are transactions of a new company called
Pose-for-Pics.

Aug.
1

Madison Harris, the owner,
invested $6,500 cash and $33,500 of photography equipment in the company in
exchange for common stock.

2

The company paid $2,100 cash for
an insurance policy covering the next 24 months.

5

The company purchased office
supplies for $880 cash.

20

The company received $3,331 cash
in photography fees earned.

31

The company paid $675 cash for
August utilities.

5.The transactions of Spade Company:

a.

Kacy Spade, owner, invested
$100,750 cash in the company in exchange for common stock.

b.

The company purchased office
supplies for $1,250 cash.

c.

The company purchased $10,050 of
office equipment on credit.

d.

The company received $15,500 cash
as fees for services provided to a customer.

e.

The company paid $10,050 cash to
settle the payable for the office equipment purchased in transaction c.

f.

The company billed a customer
$2,700 as fees for services provided.

g.

The company paid $1,225 cash for
the monthly rent.

h.

The company collected $1,125 cash
as partial payment for the account receivable created in transaction f.

i.

The company paid $10,000 cash in
dividends to Spade (sole shareholder).

Prepare a Trial Balance.