Description Option #1: The Four Steps in the Accounting ProcessYou are operating your accounting firm. Your first client had the following transactions in April 20×7:Borrowed $10,000 from the bank.Purchased $2,250 of computer equipment for cash.Paid $750 cash for this month’s rent.Purchased $1,500 of office supplies on credit. It is expected that these supplies will last for 3 months.Billed $500 to customers for services rendered during April.Paid cash for the $1,500 balance owed to the vendor from Transaction 4.Collected $450 cash of the amount billed to the customer in Transaction 5Sold one-half of the equipment purchased in Transaction 2 for $1,125 in cash, with no gain or loss recognized on the sale.Paid $1,000 of the principal from the loan in transaction 1, along with $50 in interest.Required:Use the four steps in the accounting cycle to analyze business transactions, a) Identifying transactions from source documents, b) Analyzing transactions using the accounting equation, c) Recording the journal entry and d) Posting the entry to the ledger to complete the following:Prepare journal entries for each of the above transactions.Post the journal entries to T-accounts and total the accounts.From the T-accounts, prepare an unadjusted trial balance. List expenses in alphabetical order.Use the following chart of accounts names and template:Cash, Capital Stock, Equipment, Accounts Payable, Rent, Supplies, Accounts Receivable, Revenue.Your assignment must include a title page and reference page. Review the grading rubric to understand how you will be graded on this assignment. Module 2 Part 2 Lecture: Double Entry System and Financial Statements for examples related to your Critical Thinking assignment for this week. Reach out to your instructor if you have questions about the assignment.Note: The download the template required for this assignment is located in the Module 2 folder. 1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview ACT300 Principles of Accounting I Module 1: Critical Thinking Template Option #1 Template instructions: Use the accounting equation to analyze the transactions that occurr Include a written explanation (one sentence) to explain the transaction (i.e. This transaction incre Accounts should include: Cash, Accounts Receivable, Equipment, Supplies, Accounts Payab Revenue (Sales), Capital Stock, and Wages Expense Joey John’s Inc Item Example Cash ASSETS Accounts Receivable + $10,000 = Supplies Equipment LIABILITIES Accounts Payable ‘+$10,000 Explanation of transaction: Transaction increased assets by $10,000 and increased liab (a) Explanation of transaction: (b) Explanation of transaction: (c) Explanation of transaction: (d) Explanation of transaction: (e) Explanation of transaction: (f) Explanation of transaction: (g) Explanation of transaction: (h) Explanation of transaction: (i) Explanation of transaction: (j) Explanation of transaction: (k) Explanation of transaction: transactions that occurred during the first month of operations for Joey John’s, Inc. i.e. This transaction increases assets by $xxx and decreases liabilites by $xxx). pplies, Accounts Payable, Notes Payable, Unearned Revenue, Joey John’s Inc LIABILITIES Notes Payable + Unearned Revenue 10,000 and increased liabilities by $10,000. STOCKHOLDERS’ EQUITY Capital Stock Revenues Wages Expenses Tax Expenses Purchase answer to see full attachment Tags: liabilities journal entries wages expenses Source Documents Loan note drawdown documentation User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

Option #1: The Four Steps in the Accounting ProcessYou are operating your accounting firm. Your first client had the following transactions in April 20×7:Borrowed $10,000 from the bank.Purchased $2,250 of computer equipment for cash.Paid $750 cash for this month’s rent.Purchased $1,500 of office supplies on credit. It is expected that these supplies will last for 3 months.Billed $500 to customers for services rendered during April.Paid cash for the $1,500 balance owed to the vendor from Transaction 4.Collected $450 cash of the amount billed to the customer in Transaction 5Sold one-half of the equipment purchased in Transaction 2 for $1,125 in cash, with no gain or loss recognized on the sale.Paid $1,000 of the principal from the loan in transaction 1, along with $50 in interest.Required:Use the four steps in the accounting cycle to analyze business transactions, a) Identifying transactions from source documents, b) Analyzing transactions using the accounting equation, c) Recording the journal entry and d) Posting the entry to the ledger to complete the following:Prepare journal entries for each of the above transactions.Post the journal entries to T-accounts and total the accounts.From the T-accounts, prepare an unadjusted trial balance. List expenses in alphabetical order.Use the following chart of accounts names and template:Cash, Capital Stock, Equipment, Accounts Payable, Rent, Supplies, Accounts Receivable, Revenue.Your assignment must include a title page and reference page. Review the grading rubric to understand how you will be graded on this assignment. Module 2 Part 2 Lecture: Double Entry System and Financial Statements for examples related to your Critical Thinking assignment for this week. Reach out to your instructor if you have questions about the assignment.Note: The download the template required for this assignment is located in the Module 2 folder.

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

ACT300 Principles of Accounting I
Module 1: Critical Thinking Template Option #1
Template instructions: Use the accounting equation to analyze the transactions that occurr
Include a written explanation (one sentence) to explain the transaction (i.e. This transaction incre
Accounts should include: Cash, Accounts Receivable, Equipment, Supplies, Accounts Payab
Revenue (Sales), Capital Stock, and Wages Expense
Joey John’s Inc
Item
Example
Cash
ASSETS
Accounts
Receivable
+ $10,000
=
Supplies
Equipment
LIABILITIES
Accounts Payable
‘+$10,000
Explanation of transaction: Transaction increased assets by $10,000 and increased liab
(a)
Explanation of transaction:
(b)
Explanation of transaction:
(c)
Explanation of transaction:
(d)
Explanation of transaction:
(e)
Explanation of transaction:
(f)
Explanation of transaction:
(g)
Explanation of transaction:
(h)
Explanation of transaction:
(i)
Explanation of transaction:
(j)
Explanation of transaction:
(k)
Explanation of transaction:
transactions that occurred during the first month of operations for Joey John’s, Inc.
i.e. This transaction increases assets by $xxx and decreases liabilites by $xxx).
pplies, Accounts Payable, Notes Payable, Unearned Revenue,
Joey John’s Inc
LIABILITIES
Notes Payable
+
Unearned
Revenue
10,000 and increased liabilities by $10,000.
STOCKHOLDERS’ EQUITY
Capital Stock Revenues
Wages Expenses
Tax Expenses

Purchase answer to see full
attachment

Tags:
liabilities

journal entries

wages expenses

Source Documents

Loan note drawdown documentation

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.