ACCT 203 Lecture Notes - Lecture 2: General Ledger, Accounts Payable, Income Statement

Three former college classmates decided to open a store nearcampus to sell wireless equipment to students. They created apublic company and issued stock to interested investors. Required:Several transactions occurred in March. Each is describedseparately in this folder. For each transaction, indicate theCOMPANY accounts that are affected, whether they increase ordecrease, and the amount of the increase or decrease. YOU MUSTFOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THECORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILLNOT RECEIVE CREDIT. After each transaction description, there areseveral "Account" submission boxes and corresponding "Amount"submission boxes. To indicate the accounts that you think areaffected, choose them from the drop-down menu. But you MUST selectthem in the order that they are listed in the menu. FOR EXAMPLE, ifyou think that Cash and Inventory are affected by a particulartransaction, you must record the Cash impact first and theInventory impact second because that is the order that they arelisted in the drop-down menu. If you record the Inventory impactfirst and the Cash impact second, even if they are the correctaccounts and even if you have the correct dollar amounts, youranswer will be considered wrong. When you record the dollaramounts, be sure to use a minus sign to indicate a decrease in theaccount. You don't need to use a plus sign to indicate an increase.There are always more "Account" and "Amount" submission boxesavailable than are necessary. When you have indicated all theaccounts that are affected by the transaction, select "Leave Blank"from the drop-down menu for EACH of the remaining "Account"submission boxes (you can leave the "Amount" boxes blank). Fortransactions 3, 4, 5, and 8, you are given additional instructions.Read them carefully. You get 5 tries for each complete entry. Theentries for transaction #8 is worth 4 points. The entries for eachof the other transactions are worth 2 point.

Transaction 3
A store was rented for $1,200 per month. A lease was signed for oneyear on March 1. Rent for the first 4 months was paid in advance.[Note: Record the March 1 transaction first andthe March 31 adjustment second.]

Account: Dollar Amount:

Account: Dollar Amount:

Account: Dollar Amount:

Account: Dollar Amount

Account: Dollar Amount

Several transactions occurred in March. Each is describedseparately in this folder. For each transaction, indicate theCOMPANY accounts that are affected, whether they increase ordecrease, and the amount of the increase or decrease.
After each transaction description, there are several "Account"submission boxes and corresponding "Amount" submission boxes. Toindicate the accounts that you think are affected, choose them fromthe drop-down menu. But you MUST select them in the order that theyare listed in the menu. FOR EXAMPLE, if you think that Cash andInventory are affected by a particular transaction, you must recordthe Cash impact first and the Inventory impact second because thatis the order that they are listed in the drop-down menu. If yourecord the Inventory impact first and the Cash impact second, evenif they are the correct accounts and even if you have the correctdollar amounts, your answer will be considered wrong.

When you record the dollar amounts, be sure to use a minus signto indicate a decrease in the account. You don't need to use a plussign to indicate an increase.

Options for account: Cash, accounts receivable, inventory,prepaid rent, fixtures and equipment, accounts payable, interestpayable, wages payable, notes payable, paid in capital, retainedearnings, leave blank

Transaction 4
Website advertising was purchased for $4,000. They were able to geta good deal because one of the company's owners also owns stock inthe website company. The company also paid $7,000 for someadvertising in local newspapers. [Note: Combineboth transactions into one entry].

Account: Dollar Amount:

Account: Dollar Amount:

Account: Dollar Amount:

Account: Dollar Amount

Account: Dollar Amount

Three former college classmates decided to open a store nearcampus to sell wireless equipment to students. They created apublic company and issued stock to interested investors.

Required: Several transactions occurred in March.Each is described separately in this folder. For each transaction,indicate the COMPANY accounts that are affected, whether theyincrease or decrease, and the amount of the increase ordecrease.

YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOWTHE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOUWILL NOT RECEIVE CREDIT.

After each transaction description, there are several "Account"submission boxes and corresponding "Amount" submission boxes. Toindicate the accounts that you think are affected, choose them fromthe drop-down menu. But you MUST select them in the order that theyare listed in the menu. FOR EXAMPLE, if you think that Cash andInventory are affected by a particular transaction, you must recordthe Cash impact first and the Inventory impact second because thatis the order that they are listed in the drop-down menu. If yourecord the Inventory impact first and the Cash impact second, evenif they are the correct accounts and even if you have the correctdollar amounts, your answer will be considered wrong.

When you record the dollar amounts, be sure to use a minus signto indicate a decrease in the account. You don't need to use a plussign to indicate an increase.

There are always more "Account" and "Amount" submission boxesavailable than are necessary. When you have indicated all theaccounts that are affected by the transaction, select "Leave Blank"from the drop-down menu for EACH of the remaining "Account"submission boxes (you can leave the "Amount" boxes blank).

For transactions 3, 4, 5, and 8, you are given additionalinstructions. Read them carefully.

Transaction 7
Miscellaneous expenses paid for in cash were $2,000.

Options for account: Cash, accounts receivable, inventory,prepaid rent, fixtures and equipment, accounts payable, interestpayable, wages payable, notes payable, paid in capital, retainedearnings, leave blank

Account: Dollar Amount:

Account: Dollar Amount:

Account: Dollar Amount:

Account: Dollar Amount

Account: Dollar Amount