Determine what accounts are affected Coursework Example

Name
Instructor
Course
Date
Week 2 Assignment
Question 1
Determine what accounts are affected by what amounts and indicate whether it is an increase (+), decrease (-), or there is no effect (0) in each of the following cases.
Sept. 6: Invested $35,000 cash and $2,000 of supplies into the start-up of the business
Sept. 8: Received $21,000 cash for lawn care services provided to customers
Sept. 10: Purchased machinery on account for $18,500 from Sears Corporation
Sept. 12: Paid $3,750 for supplies bought
Sept. 15: Paid $17,500 for land acquired
Sept. 17: Paid $10,000 on account for the machinery previously purchased from Sears
Sept. 19: Paid telephone bill for $1,000
Sept. 21: Paid $1,500 for supplies
Sept. 21: Paid $3,500 for additional machinery
Sept. 22: Received $23,500 for services rendered
Sept. 26: Withdrew $10,000 cash for personal use
Sept. 30: The inventory of supplies showed a balance of $3,000 on hand

Instructions:
You are required to record the effect of each transaction in the table provided below.
Question 1 (Worksheet)
Record the effect of each transaction in the following table:
Cash Supplies Equipment Land Accounts Payable Capital
Sept. 6 +35,000 +2,000 0 0 0 +37,000
Sept. 8 +21,000 0 0 0 0 +21,000
Sept. 10 0 0 +18,500 0 +18,500 0
Sept. 12 -3,750 +3,750 0 0 0 0
Sept. 15 -17,500 0 0 17,500 0 0
Sept. 17 -10,000 0 0 0 -10,000 0
Sept. 19 -1,000 0 0 0 0 -1000
Sept. 21 -1,500 1,500 0 0 0 0
Sept. 21 -3,500 0 3,500 0 0 0
Sept. 22 +23,500 0 0 0 0 +23,500
Sept. 26 -10,000 0 0 0 0 -10,000
Sept.

30 0 -4,250 0 0 0 -4,250
Calculation 2,000+3,750+1,500-3,000= 4,250

Question 2
You have been recently appointed as the accountant for Gone Clear Company. Prepare an income statement based on the following transactions:
Service Revenue$190,000
Supplies Expense$ 80,000
Salary & Wage$ 60,000
Administrative Expense$ 30,000
Miscellaneous Expense$ 5,000

The Income statement for Gone Clear Company
Service Revenue………………………………….190, 000
Expenses:
Supplies expense……………80,000
Salary and Wage……………60, 000
Administrative expense….30, 000
Miscellaneous expense……5,000
Total expenses…………………………………….175, 000
Net Income/Loss………………………………….15,000

Question 3
Based on Question 2 above (Gone Clear Company), what would the net income or net loss be if, in addition to the listed expenses, there was an additional $25,000 for office rent?
For additional office rent of $ 25,000, then total loss for the company would be
Net income $ 15,000 less $ 25,000= – $10,000