Chapter 2 EOC – Transaction Analysis

SUBMIT IN WORD DOC or PDF FORMAT VIA THE CANVAS ASSIGNMENT SUBMISSION FUNCTION

CLEARLY PRINT YOUR NAME AND ASSIGNMENT NAME AT THE TOP OF EACH PAGE

Jannelle Richards has worked as a graphic designer for more than 5 years. She decided to open her own graphic design business as of the first of last month, which is known as Sonoran Graphic Designs.

Account for the effect of the following transactions on the accounting equation for Sonoran.

1. Initial investment by Jannelle Richards, $25,000.

2. Purchased office supplies from OfficeMax for $1,500, on credit.

3. Paid $4,500 on a 6-month office rental contract.

4. Purchases $9,000 of office furniture from Ikea, on account.

5. Paid $6,000 for a new computer and printer (Equipment).

6. Received $9,600 in cash from sales for the first half of the month.

7. For the first half of the month, sales on account totaled $5,100.

8. Received $3,000 cash advance from a customer to develop a graphic design project.

9. Paid part-time assistant $1,000 for 2-weeks wages.

10. Paid telephone bill for the month of $350.

11. Received utility bill from APS for $200.

12. Collected cash from credit sales of $3,200.

13. Recorded rental expense for first month, $750.

14. Received $6,900 in cash from sales for the second half of the month.

15. Paid part-time assistant $1,000 for 2-weeks wages.

16. Paid Ikea $5,000 on account.

17. Withdrew $12,000 for personal use.

Requirements:

1. Use the attached T-Account Page or the Transaction Debit/Credit Page to summarize the preceding transactions as they affect the accounting equation. Identify each transaction by number. Correctly total each account.

2. In good order and form, prepare a Trial Balance.

T-Account Page – If you have the ability to scan documents, print and complete this page, then scan.

If you do not have the ability to scan, skip this page and complete the transaction Debit/Credit page.

Transaction Debit/Credit Page – If you did not complete the T-Account page, complete this page.

Account for the effect of the following transactions on the accounting equation for Sonoran.

Account Debit Account Credit

Name Amount Name Amount

1. Initial investment by Jannelle Richards, $25,000. __________ __________ __________ __________

2. Purchased office supplies for $1,500, on credit. __________ __________ __________ __________

3. Paid $4,500 on a 6-month office rental contract. __________ __________ __________ __________

4. Purchases $9,000 of furniture, on account. __________ __________ __________ __________

5. Paid $6,000 for a new computer (Equipment). __________ __________ __________ __________

6. Received $9,600 in cash from. __________ __________ __________ __________

7. Sales on account totaled $5,100. __________ __________ __________ __________

8. Received $3,000 cash advance from a customer. __________ __________ __________ __________

9. Paid assistant $1,000 for 2-weeks wages. __________ __________ __________ __________

10. Paid telephone bill for the month of $350. __________ __________ __________ __________

11. Received utility bill from APS for $200. __________ __________ __________ __________

12. Collected cash from credit sales of $3,200. __________ __________ __________ __________

13. Recorded rental expense for first month, $750. __________ __________ __________ __________

14. Received $6,900 in cash from sales. __________ __________ __________ __________

15. Paid assistant $1,000 for 2-weeks wages. __________ __________ __________ __________

16. Paid vendor $5,000 on account. __________ __________ __________ __________

17. Withdrew $12,000 for personal use. __________ __________ __________ __________

In good order and form prepare a Trial Balance for Sonoran Graphic Designs.

Text Format Example: Comprehensive Need-to-Know Review Problem 2-5

In good order and form prepare an Income Statement for Sonoran Graphic Designs.

Text Format Example: Comprehensive Need-to-Know Review Problem 2-5

In good order and form prepare a Statement of Owners Equity for Sonoran Graphic Designs.

Text Format Example: Comprehensive Need-to-Know Review Problem 3-7

In good order and form prepare a Balance Sheet for Sonoran Graphic Designs.

Text Format Example: Comprehensive Need-to-Know Review Problem 2-5Cash Acc Rec Supplies FurnitureEquipment Prepaid Rent Unearned RevenueCapital Revenue Telephone ExpUtilities ExpAcc PayWages ExpRent Exp WithdrawalsCashAcc RecSupplies FurnitureEquipment Prepaid Rent Unearned RevenueCapitalRevenueTelephone ExpUtilities ExpAcc PayWages ExpRent ExpWithdrawals