Cost Controls and Budgeting The High Corporation was formed on April one of the current year....

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Cost Controls and Budgeting The High Corporation was formed on April one of the current year. The company is involved in the excavating business. Part 1 April 1 April 1 April 1 Purchased with cash-excavating equipment for $10,000. April 1 Purchased a two-year liability insurance premium for $3,264. Paid cash. 1. Complete the transaction data for each transaction listed in the exercise documenting the following under each transaction: names of accounts, type of accounts (Asset, Liability, Equity, Revenue, Expense), as a result of the transaction did the accounts increase or decrease (+/-), and the amount. Use the first transaction as a model for all subsequent transactions. Transaction data that is provided for you is correct and should not be changed. April 10 Purchased office supplies for $1,240 on account. April 12 Purchased a used bulldozer for $3,700 cash. April 14 Paid $2,400 to rent a warehouse for one year. 2. As you work through the transactions, ask yourself these four questions. They will help in figuring out where to put the data. - What are the accounts? (REMEMBER: Double entry accounting requires that at least two accounts are impacted in every transaction). Consult column 2 on the Chart of Accounts. April 15 Paid Jones Construction Company $7,000 for a building to be used as an office. Cash Asset - What type of accounts are they? Consult column 1 on the Chart of Accounts Building Asset + $7,000 $7,000 - As a result of this transaction is there more of this account or less? How much of this account was there prior to this transaction? April 16 Paid the employee salaries of $4,000. - By how much? The corporation is organized by selling stock for $50,000. Cash Asset Common stock Equity $50,000 $50,000 Purchased a parcel of land for $8,000. Paid $1,000 in cash and issued a promissory note for the balance. April 21 Paid $750 for advertising incurred during April. April 17 Billed Powers Construction $8,000 for excavating work performed in April. April 18 Received $13,000 from Settle Contractors Inc. for excavating work performed earlier in the month. Cash Asset Exc. Revenue Revenue $13,000 $13,000 April 19 Paid $2,000 on the note payable signed on April 1. April 22 Received a check from Powers Construction for $1,800 for work completed in April. April 23 Received a bill for utilities from Bonneville Power Company for $200. Bill to be paid in May. Accounts Payable Utilities Expense Liabilities Expenses $200 $200 April 25 Paid Amoco Oil Company bill for $1,200 for gasoline used during April. April 26 Billed Toronto Contractors Inc. $7,500 for work performed in April. April 27 Paid $1,300 for repairs made on the bulldozer. April 30 Recognized insurance expense for the month of April. April 30 Recognized the salary expense of $3,800. These salaries are to be paid in May. April 30 Remaining office supplies amount is $400. April 30 Recognized a portion of the prepaid rent on the warehouse. Cost Controls and Budgeting The High Corporation was formed on April one of the current year. The company is involved in the excavating business. Part 1 April 1 April 1 April 1 Purchased with cash-excavating equipment for $10,000. April 1 Purchased a two-year liability insurance premium for $3,264. Paid cash. 1. Complete the transaction data for each transaction listed in the exercise documenting the following under each transaction: names of accounts, type of accounts (Asset, Liability, Equity, Revenue, Expense), as a result of the transaction did the accounts increase or decrease (+/-), and the amount. Use the first transaction as a model for all subsequent transactions. Transaction data that is provided for you is correct and should not be changed. April 10 Purchased office supplies for $1,240 on account. April 12 Purchased a used bulldozer for $3,700 cash. April 14 Paid $2,400 to rent a warehouse for one year. 2. As you work through the transactions, ask yourself these four questions. They will help in figuring out where to put the data. - What are the accounts? (REMEMBER: Double entry accounting requires that at least two accounts are impacted in every transaction). Consult column 2 on the Chart of Accounts. April 15 Paid Jones Construction Company $7,000 for a building to be used as an office. Cash Asset - What type of accounts are they? Consult column 1 on the Chart of Accounts Building Asset + $7,000 $7,000 - As a result of this transaction is there more of this account or less? How much of this account was there prior to this transaction? April 16 Paid the employee salaries of $4,000. - By how much? The corporation is organized by selling stock for $50,000. Cash Asset Common stock Equity $50,000 $50,000 Purchased a parcel of land for $8,000. Paid $1,000 in cash and issued a promissory note for the balance. April 21 Paid $750 for advertising incurred during April. April 17 Billed Powers Construction $8,000 for excavating work performed in April. April 18 Received $13,000 from Settle Contractors Inc. for excavating work performed earlier in the month. Cash Asset Exc. Revenue Revenue $13,000 $13,000 April 19 Paid $2,000 on the note payable signed on April 1. April 22 Received a check from Powers Construction for $1,800 for work completed in April. April 23 Received a bill for utilities from Bonneville Power Company for $200. Bill to be paid in May. Accounts Payable Utilities Expense Liabilities Expenses $200 $200 April 25 Paid Amoco Oil Company bill for $1,200 for gasoline used during April. April 26 Billed Toronto Contractors Inc. $7,500 for work performed in April. April 27 Paid $1,300 for repairs made on the bulldozer. April 30 Recognized insurance expense for the month of April. April 30 Recognized the salary expense of $3,800. These salaries are to be paid in May. April 30 Remaining office supplies amount is $400. April 30 Recognized a portion of the prepaid rent on the warehouse.