ACCT 201

FA 21
Chapter 2
Practice Homework Name: ____________________________

Ex 2-9

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

 
August 1 M. Harris, the owner, invested $6,500 cash and $33,500 of photography equipment
in the company.
August 2 The company paid $2,100 cash for an insurance policy covering the next 24
months.
August 5 The company purchased supplies for $880 cash.

August 20 The company received $3,331 cash from taking photos for customers.

August 31 The company paid $675 cash for August utilities.

o Date General Journal Debit Credit

1 August 01

2 August 02

3 August 05

4 August 20

5 August 31

Use the following information for the Quick Studies below.

The following information applies to the questions displayed below.

Lawson Consulting, which began operations on December 1, had the following accounts and
amounts on December 31. The I. Lawson, Capital account balance at December 1 was $0 and the
owner invested $10,500 cash in the company on December 2. On December 31, the company’s
accounts and amounts for the month of December are shown in the table below:
 
Cash $ 5,000 I. Lawson, Withdrawals $ 1,500
Account’s receivable 4,500 Services revenue 12,000
Equipment 6,500 Rent expense 2,000
Accounts payable 3,000 Wage’s expense 6,000
I. Lawson, Capital 10,500   

QS 2-15 (Static) Preparing an income statement LO P1

Use the above information to prepare a December income statement for the business.

Use the above information to prepare a June income statement for the business.

LAWSON CONSULTING
Income Statement
For Month Ended December 31
QS 2-16 (Static) Preparing a statement of owner's equity LO P1
Use the above information to prepare a December statement of owner's equity for Lawson
Consulting. Hint: Net income for December is $4,000.
LAWSON CONSULTING

Statement of Owner’s Equity

For Month Ended December 31

I. Lawson, Capital, December 1

I. Lawson, Capital, December 31

QS 2-17 (Static) Preparing a balance sheet LO P1

Use the above information to prepare a December 31 balance sheet for Lawson
Consulting. Hint: The ending I. Lawson, Capital account balance as of December 31 is $13,000.
LAWSON CONSULTING
Balance Sheet
As of December 31
Assets: Liabilities:

Equity:

Total equity
Total Assets Total Liabilities and Equity $

Problem 2-1A Preparing and posting journal entries; preparing a trial balance
Karla Tanner opens a Web consulting business called Linkworks and completed the following
transactions in its first month of operations.
  

 April  1 Tanner invested $80,000 cash along with office equipment valued at $26,000 in the
company.

   2 The company prepaid $9,000 cash for 12 months’ rent for office space. Hint: Debit
Prepaid Rent for $9,000.
   3 The company made credit purchases for $8,000 in office equipment and $3,600 in
office supplies. Payment is due within 10 days.
   6 The company completed services for a client and immediately received $4,000 cash.
   9 The company completed a $6,000 project for a client, who must pay within 30 days.
   1 The company paid $11,600 cash to settle the account payable created on April 3.
3
   1 The company paid $2,400 cash for the premium on a 12-month insurance policy. Hint:
9 Debit Prepaid Insurance for $2,400.
   2 The company received $4,400 cash as partial payment for the work completed on April
2 9.
   2 The company completed work for another client for $2,890 on credit.
5
    2 Tanner withdrew $5,500 cash from the company for personal use.
8
    2 The company purchased $600 of additional office supplies on credit.
9
   3 The company paid $435 cash for this month’s utility bill.
0

  
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash
(101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent
(131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner,