Questions

Answer Sheet

Question 1 - Expanded Accounting Equation (20%) Leroy Greene of Vancouver decided to open his own training services company at the end of October. Analyze the following transactions by recording their effects in the expanded accounting equation. (worksheet attached) 1. Leroy invested $9,000 in the company. 2. Purchased new office equipment on account, $4,250. 3. Received cash for services rendered, $2,350. 4. Paid secretary's salary, $800. 5. Billed customers for training services rendered, $3,650. 6. Paid rent expense for the month, $600. 7. Leroy withdrew cash for personal use, $1,000. 8. Advertising invoice was received for October (to be paid in November), $400. 9. Repair to office equipment paid, $192. Question 2 - T Accounts and Trial Balance (20%) From the following accounts of Linda's Consulting Service of Taber, foot and balance each account, then prepare a trial balance. (worksheets attached) Question 3 - Financial Statements (60%) Holly's Accounting Services showed the following trial balances for her first month just ended July 31, 2020. Use this information to complete (a) an income statement, (b) a statement of owner's equity, and (c) a balance sheet. (Note: Prepaid Insurance is an Asset) HOLLY'S ACCOUNTING SERVICES TRIAL BALANCE JULY 31, 2020 $3,000 1,900 600 1,400 Cash Accounts Receivable Prepaid Insurance Office Equipment Accounts Payable Loan Payable H. Good, Capital H. Good, Withdrawals Accounting Fees Earned Salaries Expense Rent Expense Total $ 520 1,600 5,480 1,500 3.000 1,600 600 $10,600 $10,600 Question GREENE'S TRAINING SERVICE CO. ASSETS LIABILITIES + OWNER'S EQUITY Accounts Office Accounts L. Greene, L Greene Training + Revenue Cash + Receivable - Equipment - Payable + Capital Withd. Expenses 2 5. 7 Linda Me Withdraw 312 8. 9. ENDING BALANCE Question 2 5.000.000 3.00 77 400 500 TT 16.000 Question 2. Til Balance LINDAS CONSULTING SERVICE TRIAL BALANCE OCTOBER 31, 2020 Cr. Gestion 3 A HOLLY'S ACCOUNTING SERVICES INCOME STATEMENT FOR THE MONTHENEDALY.2000 HOLLYS ACCOUNTING SERVICES STATEMENT OF OWNERS TOUTY FOR MONTH ENDED ANY 1.2020 LIABILITIES AND OWNERS OUTY HOLLY ACCOUNTING SERVICES BALANCE SHEET SEAW ASSETS (C)