Homework:Chapter 1 Assignment

Question 3, P1-2A (book/static)

Part 2 of 6

HW Score: 59.2%, 2.37 of 4 points

Points: 0.31 of 1

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Part 1

Jon

Conlin,

CPA, was an accountant and a partner in a large firm. Recently he resigned his position to open his own accounting business, which he operates as a proprietorship.

The following events took place during the organizing phase of his new business and its first month of operations:

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(Click the icon to view the transactions.) Required

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Part 1

Requirement 1. Classify each of the events as one of the following: (Type a, b, or c for each event.)

a.A business transaction to be accounted for by the business.

b.A business-related event but not a transaction to be accounted for by the business at this time.

c.A personal transaction not to be accounted for by the business.

Jul. 4		cc	Conlin received $100,000 cash from his former partners in the firm from which he resigned.
5		aa	Conlin invested $50,000 cash in his business.
5		aa	The business paid office rent expense for the month of July, $3,000.
6		aa	The business paid $1,000 cash for letterhead stationery for the office.
7		aa	The business purchased office furniture for the office on account for $7,000, promising to pay within six months.
10		cc	Conlin sold 2,000 shares of Royal Bank stock, which he had owned for several years, receiving $25,000 cash from his stockbroker.
11		cc	Conlin deposited the $25,000 cash from sale of the Royal Bank shares in his personal bank account.
12		bb	A representative of a large construction company telephoned Conlin and told him of the company's intention to transfer its accounting work to Conlin's business.
29		aa	The business performed an audit for a client and submitted the bill for services, $10,000. The business expected to collect from this client within two weeks.
31		aa	Conlin withdrew $3,000 cash from the business.

Part 2

Requirement 2. Analyze the effects of the events on the accounting equation of the business.

Complete an analysis of the transactions for each date shown, and then total the balance of each account at the bottom. Leave cells blank on any personal transactions: (Complete only the necessary answer boxes for your transaction lines. Enter decreases with a minus sign or parentheses. Complete the analysis in the order in which the transactions are given. Include the type of owner's equity transaction for all transactions that affect owner's equity.)

Assets

=

Liabilities

+

Owner's Equity

Accounts

Office

Office

Accounts

J. Conlin,

Type of Owner's

Date

Cash

+

Receivable

+

Supplies

+

Furniture

=

Payable

+

Capital

Equity transaction

Jul. 4

+

+

+

=

+

5

+

+

+

=

+