Introduction to Accounting Assignment - Journal Entries and Ledgers

This assignment provides solutions to an introduction to accounting assignment. The assignment covers journal entries, including transactions for owner investments, purchases, and expense payments. Part A requires preparing journal entries, while Part B involves recording selected transactions in a two-column journal. Part C focuses on preparing closing entries based on an income statement. The final part analyzes selected ledger accounts to determine withdrawals, net income, total revenue, and total expenses. The assignment demonstrates practical application of accounting principles and financial statement analysis.

ASSIGNMENT 08
A01 Introduction to Accounting
Directions: Be sure to save an electronic copy of your answer before submitting for grading. Unless
otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and
grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages;
refer to the "Assignment Format" page located on the Course Home page for specific format
requirements.
Part A (20 points)
Prepare in proper form journal entries for the following transactions. Omit explanations.
October
2 Owner made a cash investment into the company $5,000
8 Bought supplies on account $100.
10 Paid salaries, $700
15 Paid for supplies purchased on October 8
21 Received company telephone bill, to be paid later, $30
Part B (5 points each for a possible total of 50 points)
Record the following selected transactions for January in a two-column journal, identifying each entry by
letter:
(a) Earned $7,000 fees; customer will pay later.
(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
(c) Paid $3,000 for rent for January.
(d) Purchased $2,500 of supplies on account.
(e) A. Allen $1,000 investment in the company.
(f) Received $7,000 in cash for fees earned previously.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $6,250.
(i) Received $7,150 from customers on account.
(j) A. Allen withdrawal of $1,750.

Part C
(1) (10 points) From the following items in the income statement columns of the worksheet of
Friend's Tutoring at December 31, prepare the closing entries without explanation, assuming
that a $1,000 withdrawal was made during the period.
Income Statement
Account Debit Credit
Tutoring Fees 3,450
Wages Expense 700
Rent Expense 600
Supplies Expense 450
Insurance Expense 250 _____
2,000 3,450
Net Income 1,450 _____
$3,450 $3,450
(2) (5 points each for a possible total of 20 points) A summary of selected ledger accounts appear
below for S. Ball for the current calendar year.
Answer the following questions.
a. What was the total amount of withdrawals for the year?
b. What was the net income?
c. What was the total revenue?
d. What were the total expenses?