Acct 301 hw 1 section 4510

ACCT 301 HW 1 SECTION 4510FALL 2015

University of MD University College ACCT 301 Section 4510

Professor Name:  Ayodele Gbenjo, CPA, MBA

Student Name: ________________________

Administrative Notes:

• You may use a calculator, your textbook, and anything posted in our LEO classroom.
• Write directly on this HW 1 paper.
• Late submissions will be penalized.

·   You must show all your computationsto receive credit for your answer

·   Do not provide your  answer on a PDF document (Provide solution on this paper)

·   No scanned documents will be accepted nor graded

·   Late submission is not allowed

·   You must submit your paper  by Sunday 8/23/2015 11.59pm no exception

Chapter 2

Question 1 – (Knowledge test – Accounting and Its use in Business Decisions)

The following data are for Central District Parking Corporation:

The summarized transactions for October 2010 are as follows:

Oct.1  The accounts payable owed as of September 30 (USD 94,000) were paid.

1    The company paid rent for the premises for October, USD 19,200.

7    The company received cash of USD 4,200 for parking by daily customers during the week.

10  The company collected USD 14,400 of the accounts receivable in the balance sheet at

September,30

14  Cash receipts for the week from daily customers were USD 6,600.

15  Parking revenue earned but not yet collected from fleet customers was USD 6,000.

16  The company paid salaries of USD 2,400 for the period October 1–15.

19  The company paid advertising expenses of USD 1,200 for October.

21 Cash receipts for the week from daily customers were USD 7,200.

24 The company incurred miscellaneous expenses of USD 840. Payment will be due Nov 10.

31 Cash receipts for the last 10 days of the month from daily customers were USD 8,400.

31 The company paid salaries of USD 3,000 for the period October 16–31.

31 Billings to monthly customers totaled USD 21,600 for October.

31 Paid cash dividends of USD 24,000.

Requirements:

a. Prepare a summary of transactions (as demonstrated in class, and see Part A of Exhibit 4- refer to chapter 2 of our text) using column headings. Determine balances after each transaction.

b. Prepare an income statement for October 2010.

c. Prepare a statement of retained earnings for October 2010

d. Prepare a balance sheet as of October 31, 2010

Chapter3

Question 2 – (Knowledge Test – Recording Business Transactions)

 The transactions listed below are those of Reliable Computer Repair, Inc., for April 2010:

Apr. 1 Cash of USD 500,000 was received for capital stock issued to the owners.

3  Rent was paid for April, USD 3,500.

6  Trucks were purchased for USD 56,000 cash.

7  Office equipment was purchased on account from Wagner Company for USD 76,800.

14  Salaries for first two weeks were paid, USD 12,000.

15  USD 28,000 was received for services performed.

18  An invoice was received from Roger’s Gas Station for USD 400 for gas and oil used during April.

23  A note was arranged with the bank for USD 80,000. The cash was received, and a note promising to  return the USD 80,000 on 2010 May 30, was signed.

29  Purchased trucks for USD 73,600 by signing a note.

30  Salaries for the remainder of April were paid, USD 14,400.

Requirements :

a. Prepare journal entries for these transactions.

b. Post the journal entries to T-accounts. Enter the account number in the Posting Reference

column of the journal as you post each amount. Use the following account numbers:

Acct.

No.   Account Title

100     Cash

150    Trucks

172    Office equipment

200   Accounts payable

201   Notes payable

300   Capital stock

400   Service revenue

506  Gas and oil expense

507  Salaries expense

515  Rent expense

c. Prepare a trial balance as of 2010 April 30.