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.

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

at the end of each transaction cycle. Transaction 1 has been completed for you.Paid wages of $700 for 1st pay period in the monthPaid creditors on account $4,000Purchased a new machine on account for $3,100Received $7,200 cash from customers for bike repairs servicePaid courier service expense $280Paid $850 cash for wages for the 2nd pay period in the month.Ruddy Lewis withdrew $500 cash for personal use (“drawings”)Paid creditors on account $1,200Inventory of supplies at end of the month (April 30) was $550Received $3,500 cash from customers for bike repairs serviceQuestion 1 continued Assets = Liabilities + Owners Equity Balance April 1+Cash+SuppliesMachinesAccounts PayableRuddy Lewis, Capital Balance (April 1) $10,800 $1,200$6,400$6,000$12,400 Transaction Numbers 1-700000-700 Balance$10,100$1,200$6,400$6,000$11,700 2-400000-40000 Balance$6,100$1,200$6,400$2,000$11,700 3 310031000 Balance$6,100$1,200$9,500$5,100$11,700 472000007200 Balance$13,300$1,200$9,500$5,100$18,900 5-280000-280 Balance$13,020$1,200$9,500$5,100$18,620 6-850000-850 Balance$12,170$1,200$9,500$5,100$17,770 7-500000-500 Balance$11,670$1,200$9,500$5,100$17,270 8-120000-12000 Balance$10,470$1,200$9,500$3,900$17,270 90-65000-650 Balance$10,470$550$9,500$3,900$16,620 1035000003500 Balance, April 30$13,970$550$9,500$3,900$20,120 Short QuestionsBalanceCashSuppliesEquipmentAccounts PayableKevin Foster, Capital Balance$20,000$5,000$60,000$0$85,000 BalanceCashSuppliesEquipmentNotes PayableKevin Foster, Capital Balance$20,000$5,000$60,000$30,000$55,000

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