Group NameGroup Number 4

Cuebillas,Rina CianenDel Rosario, Elisha AnneFernandez, Rizza Angelie Jimenez, DeniseLagrada, Ralph AngeloPajarillo, PatriciaParedes, Gwyneth

Accounting 1 TTh 10:00 - 11:30AM

Ms. Noreen GonzagaProfessor

2.2Problem 2.2 Six transactions of HORIZON MOVING COMPANY are summarized below in equation form, with each of the six transactions identified by a letter. For each of the transactions (a) through (f) you are to write a separate statement explaining the nature of the transaction. For example, the explanation of transaction a could be as follows: Purchased equipment for cash at a cost of $3,200Horizon Moving CompanyThursday, August 20, 2015

Cash+Accounts Receivable+Land+Building+Equipment=Accounts Payable+P. Youngblood, CapitalBalances$26,000.00$39,000.00$45,000.00$110,000.00$36,000.00$42,000.00$214,000.00( a )-3200.003200.00Balances$22,800.00$39,000.00$45,000.00$110,000.00$39,200.00$42,000.00$214,000.00( b )900.00-900.00Balances$23,700.00$38,100.00$45,000.00$110,000.00$39,200.00$42,000.00$214,000.00( c ) -3500.0013500.0010000.00Balances$20,200.00$38,100.00$45,000.00$110,000.00$52,700.00$52,000.00$214,000.00( d )-14500.00-14500.00Balances$5,700.00$38,100.00$45,000.00$110,000.00$52,700.00$37,500.00$214,000.00( e)15000.0015000.00Balances$20,700.00$38,100.00$45,000.00$110,000.00$52,700.00$37,500.00$229,000.00( f )2100.002100.00Balances$20,700.00$38,100.00$45,000.00$110,000.00$54,800.00$39,600.00$229,000.00

Problem 2.2

ANSWERSa. Purchased equipment for cash at a cost of $3,200b.Received $900 from the remaining balance of Mrs. Gonzagac. Purchased an equipment from XYZ Company which costs $13,500. The company agreed to pay a downpayment of 3,500 and the rest on account. d.Payed the existing $14,500 balance to Aldub Inc. e. P. Youngblood decided to invest his $15,000 cash in HMC f. Purchased equipment for $2,100 on account.

3.5Problem 3.5 Campbell Crop Dusting DR CR

1-Jun-01Cash$60,000.00Pat Campbell, Capital$60,000.00Deposited 60,000 cash in bank for the business

2-JunAircraft $180,000.00Accounts Payable$180,000.00Purchased an aircraft for 180,000 on account

4-JunRent Expense $2,500.00Cash$2,500.00Paid 2,500 for rent office and hanger space for the month

15-JunAccounts Receivable$8,320.00Crop-Dusting Revenue$8,320.00Billed customers for crop-dusting services on the first half of June

Salaries Expense$5,880.00Cash$5,880.00Paid employees' salaries

18-JunMaintenance Expense$1,890.00Cash$1,890.00Paid cash for maintenance and repair services

25-JunCash$4,910.00Accounts Receivable$4,910.00Received cash from the customers on the first half of June

30-JunAccounts Receivable$16,450.00Crop-Dusting Revenue$16,450.00Billed customers for crop-dusting services on the second half of June

Salaries Expense$6,000.00Cash$6,000.00Paid employees' salaries

Fuel Expense$2,510.00Notes Payable$2,510.00Received a bill from Henry's Feed & Fuel. Due on July 10

Pat Campbell, Drawing$2,000.00Cash$2,000.00Withrew cash from the company

Ledger

AssetsCashAccounts Receivable1-Jun$60,000.0015-Jun$8,320.004-Jun$2,500.0025-Jun$4,910.0015-Jun$5,880.0030-Jun$16,450.0018-Jun$1,890.0025-Jun$4,910.0030-Jun$6,000.0030-Jun$2,000.00Bal$46,640.00Bal$19,860.00

Aircraft2-Jun$180,000.00

Bal $180,000.00

LiabilitiesAccounts PayableNotes Payable2-Jun$180,000.0030-Jun$2,510.00

Bal$180,000.00Bal$2,510.00

Owner's Equity Pat Campbell, Capital Pat Campbell, Drawing1-Jun$60,000.00$2,000.00

Bal$60,000.00Bal$2,000.00

RevenuesCrop-Dusting Revenue15-Jun$8,320.0030-Jun$16,450.00

Bal$24,770.00

ExpensesRent ExpenseMaintenance Expense4-Jun$2,500.0018-Jun$1,890.00

Bal$2,500.00Bal$1,890.00

Salaries ExpenseFuel Expense15-Jun$5,880.0030-Jun$2,510.0030-Jun$6,000.00

Bal$11,880.00Bal$2,510.00

Campbell Crop Dusting30-Jun-01

Cash$46,640.00Accounts Receivable$19,860.00Aircraft$180,000.00Accounts Payable$180,000.00Notes Payable$2,510.00Pat Campbell, Capital$60,000.00Pat Campbell, Drawings$2,000.00Crop-Dusting Revenue$24,770.00Rent Expense$2,500.00Salaries Expense$11,880.00Maintenance Expense$1,890.00Fuel Expense$2,510.00$267,280.00$267,280.00

Campbell Crop Dusting30-Jun-01

ASSETS

Cash$46,640.00Accounts Receivable$19,860.00Aircraft$180,000.00Total Assets$246,500.00

LIABILITIES AND OWNER'S EQUITY

Liabilities

Accounts Payable$180,000.00Notes Payable$2,510.00Total Liabilities$182,510.00

Owner's Equity$60,000.00Pat Campbell, Capital$(2,000.00)Pat Campbell, Drawings$58,000.00$240,510.00Crop-Dusting Revenue$24,770.00Rent Expense$(2,500.00)Salaries Expense$(11,880.00)Maintenance Expense$(1,890.00)Fuel Expense$(2,510.00)Net Profit$5,990.00Total Liabilities and Owner's Equity$246,500.00

Yes. The account balances shall be carried out to the next month since it is only the start of the business and the fiscal year will end on May 31, 2002

3.4Problem 3.4Garwood Marine2a. Accounts Receivable is increased. Increase in assets are recorded by debits. Debit Account Receivable, $5,620.00b. Service has been rendered to a client. Revenues are recorded by credits. Credit Repair Service Revenue, $5,620.003a. The asset cash was increased. Increase in assets are recorded by Debits. Debit Cash, $2,830.00b. Service has been rendered to a client. Revenues are recorded by Credits. Credit Repair Service Revenue, $2,830.004a. Advertisement is an operating Expense. Expenses are recorded by debits. Debit Advertising Expense, $165.00b. Liabilities are increased. Increase in Liabilities are recorded in Credits. Credit Accounts Payable, $ 165.005a. The asset cash was increased. Increase in assets are recorded by Debits. Debit Cash, $5,620.00b. The asset Accounts Receivable was decreased. Decrease in assets are recorded by Credits. Credit Accounts Receivable, $5,620.006a. The asset cash was increased. Increase in assets are recorded by Debits. Debit Cash, $400.00b. The asset Accounts receivable was increased. Increase in assets are recorded by Debits. Debit Accounts Receivable, $1490.00c. Service has been rendered to a client. Increase in revenue are recorded by Credits. Credit Repair Service Revenue, $1,890.007a. Liabilities were decreased. Decreased in liabilities are recorded by Debits. Debit Accounts Payable, $165.00b. The asset cash was decreased. Decrease in cash are recorded by Credits. Credit Cash, $165.008a. Withdrawal of cash decreases owner's equity. Withdrawals are recorded by Debits. Debit Garwood, Withrawal $7,600.00b. The asset Cash was decreased. Decrease in cash are recorded by Credits. Credit Cash, $7,600.00

4.3Problem 3.5The OutlawsAdjusting Entries July EntriesDRCRPrepaid Rent$1,500,000.00Cash$1,500,000.00Paid 1500000 to Dodge City Stadium for advance rent use good for 5 months

Cash$2,560,000.00Unearned Ticket Revenue$2,560,000.00Collected 2560000 from sales of season tickets

August Adjusting Entries

Rent Expense$300,000.00Prepaid Rent$300,000.001 500 000 x 1/5

Unearned Ticket Revenue $320,000.00Ticket Revenue $320,000.002 560 000 x 1 / 8

4.4Exercise 4.4 Adjusting EntriesDale & Clark Law Officea.DRCR31-Dec-14Salaries Expense $17,800.00Salaries Payable$17,800.00Accrued salaries of staff attorneys which worth 17,800

Accounts Receivable$18,900.00Legal Fees Earned $18,900.00Unissued bill of J.R. Stone during his trial for 9 days costing 2,100 per day.

b.1-Jan-15Salaries Expense $17,500.00Salaries Payable$17,500.00Cash$35,000.00Payed Salaries of staff attorneys

How much is the amount considered salaries expense of January?Answer: $17,500.00

c. Cash$60,900.00Accounts Receivable$18,900.00Legal Fees Earned$42,000.00Received 60900 from JR Stone for the services rendered

What portion of this amount constituted revenue earned in January?Answer: $42,000.00