ACC 100 Lecture 4: Chapter 4

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apricottoad69

3 Mar 2017

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You start a consulting business on may 1, 2016 and had the below noted transactions during the month. Analyze the transactions using the critical and enhancing questions and record the business activities using the expanded accounting equation and account names. The chart is provided on the next page. Answer the questions which follow: you invest ,500 of cash into a business, you borrow ,500 from the bank which is due in 3 years. The bank charges you interest on the last day of every month: you open a business bank account with a monthly fee of . 99. The bank will withdraw the fee at the end of every month. The bank also withdraws the monthly banking fee: you pay towards the outstanding balance on the business credit card. Expenses s e i l p p u s. 7644. 76 s s e n i s u. Provide a list of the account and their ending balances.

Related Questions

PLEASE ANSWER ALL OF THESE ANSWERSâ

Assignment: Accounting for Sales and Cash Receipts

Part 1

Answer the following questions:

What is a cash receipt? How do businesses record the receipt of cash?

Explain how a purchase made with a store credit card is different from a purchase made with a bank credit card.

How are a bank credit card and a bank debit card similar? How are they different?

Part 2 (6 points)

A sales slip shows that $1,500 in merchandise has been sold and the sales tax rate is 4%. Generate the cash receipt's data.


Debit (-)	Credit (+)






Debit (-)	Credit (+)






Debit (-)	Credit (+)

Part 3 (6 points)

Your accounting supervisor has instructed you to verify the accuracy of the day s bank credit card sales, and then deposit that amount into the business checking account. Summarize the 4 steps that you need to perform.

Part 4 (6 points)
Evaluate the practice of using a contra account to record sales returns and allowances.

(What is a Contra account and how does it affect the Sales Account?)

graycricket295

PLEASE ANSWER ALL OF THESE ANSWERSâ

Assignment: Accounting for Sales and Cash Receipts

Part 1

Answer the following questions:

What is a cash receipt? How do businesses record the receipt of cash?

Explain how a purchase made with a store credit card is different from a purchase made with a bank credit card.

How are a bank credit card and a bank debit card similar? How are they different?

Part 2 (6 points)

A sales slip shows that $1,500 in merchandise has been sold and the sales tax rate is 4%. Generate the cash receipt's data.


Debit (-)	Credit (+)






Debit (-)	Credit (+)






Debit (-)	Credit (+)

Part 4 (6 points)
Evaluate the practice of using a contra account to record sales returns and allowances.

(What is a Contra account and how does it affect the Sales Account?)

whiteporpoise789

During March, the business engaged in the followingtransactions, All figures are GST (GST is 15%)inclusive where applicable:

Journalise each transaction. Key journal entries bytransaction letter, using the format below:

General Journal

Transactions	Accounts	Debit ($)	Credit ($)

1 March: Borrowed $45,000 from the bank and signed a billpayable in the name of the business.

2 March: Paid cash of $40,000 to acquire a motor vehicle.

4 March: Performed service for a customer and received cash of$5,000.

10 March: Purchased supplies on credit, $300.

14 March: Performed customer service and earned revenue oncredit, $2,600.

15 March: Paid $1,200 on account.

16 March: Paid the following cash expense: advertising, $3,000;rent, $1,500; and computer repair, $400.

22 March: Received $3,100 on account.

26 March: Received a $200 electricity and gas bill that will bepaid next month.

28 March: Harper withdrew $1,800 for personal use.

emeraldlion250

ACC 100 Lecture 4: Chapter 4

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