ACCT 500 Week 1 Assignment

Week 1 Assignment

Question 1

Ruddy Lewis operates a bike repair shop operating under the name R.L. Bike Repairs. The balances of his accounts on April 1 of the current year were as follows:

Cash$10,800

Supplies 1,200

Machines 6,400

Accounts Payable 6,000

Capital 12,400

The following transactions were incurred for the month of April:

You are required to record the transactions in the form provided, showing the balances on each account at the end of each transaction cycle. Transaction 1 has been completed for you.

  1. Paid wages of $700 for 1st pay period in the month
  2. Paid creditors on account $4,000
  3. Purchased a new machine on account for $3,100
  4. Received $7,200 cash from customers for bike repairs service
  5. Paid courier service expense $280
  6. Paid $850 cash for wages for the 2nd pay period in the month.
  7. Ruddy Lewis withdrew $500 cash for personal use (“drawings”)
  8. Paid creditors on account $1,200
  9. Inventory of supplies at end of the month (April 30) was $550
  10. Received $3,500 cash from customers for bike repairs service

Question 1 continued

  Assets = Liabilities + Owners Equity  
  Balance April 1 + Cash + Supplies Machines Accounts Payable Ruddy Lewis, Capital
  Balance (April 1) $10,800 $1,200 $6,400 $6,000 $12,400
  Transaction Numbers          
  1 -700 0 0 0 -700
  Balance $10,100 $1,200 $6,400 $6,000 $11,700
  2 -4000 0 0 -4000 0
  Balance $6,100 $1,200 $6,400 $2,000 $11,700
  3     3100 3100 0
  Balance $6,100 $1,200 $9,500 $5,100 $11,700
  4 7200 0 0 0 7200
  Balance $13,300 $1,200 $9,500 $5,100 $18,900
  5 -280 0 0 0 -280
  Balance $13,020 $1,200 $9,500 $5,100 $18,620
  6 -850 0 0 0 -850
  Balance $12,170 $1,200 $9,500 $5,100 $17,770
  7 -500 0 0 0 -500
  Balance $11,670 $1,200 $9,500 $5,100 $17,270
  8 -1200 0 0 -1200 0
  Balance $10,470 $1,200 $9,500 $3,900 $17,270
  9 0 -650 0 0 -650
  Balance $10,470 $550 $9,500 $3,900 $16,620
  10 3500 0 0 0 3500
  Balance, April 30 $13,970 $550 $9,500 $3,900 $20,120
             
             

Short Questions

Balance Cash Supplies Equipment Accounts Payable Kevin Foster, Capital  
Balance $20,000 $5,000 $60,000 $0 $85,000  
Balance Cash Supplies Equipment Notes Payable Kevin Foster, Capital  
Balance $20,000 $5,000 $60,000 $30,000 $55,000