ACCT 500 Coursework Example

ACCT500 Week 1 Problem Set Name Institution Affiliation Transactions incurred in April: Paid wages of $700 for the 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 the end of the month (April 30) was $550 Received $3,500 cash from customers for bike repairs service To record the above transaction, the accounting equation is applied. The equation is represented as Assets = Liabilities + Shareholder Equity. From the equation, it is evident that all the business assets are acquired using borrowed finances or by using the shareholder's money. When recording the transaction, any sale or purchase by the business affects both sides of the equation. Assets = Liabilities + Owners Equity Transaction Numbers/ Balance Cash Supplies Machines Accounts Payable Ruddy Lewis Account Balance (April 1) $ 10,800 $ 1,200 $ 6,400 $ 6,000 $ 12,400 1 -$ 700 0 0 0 -$ 700 Balance $ 10,100 $ 1,200 $ 6,400 $ 6,000 $ 11,700 2 -$ 4,000 0 0 -$ 4000 0 Balance $ 6,100 $ 1,200 $ 6,400 $ 2000 $ 11,700 3 0 0 $ 3,100 $ 3100 0 Balance $ 6,100 $ 1,200 $ 9,500 $ 5,100 $ 11,700 4 $ 7,200 0 0 0 $ 7,200 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 -1,200 0 0 -1,200 0 Balance $ 10,470 $ 1,200 $ 9,500 $ 3,900 $ 17,270 9 0 -$ 650 0 0 -$ 650 Balance $ 10470 $ 550 $ 9,500 $ 3,900 $ 16,620 10 $ 3500 0 0 0 $ 3,500 Balance, April 30 $ 13,970 $ 550 $ 9,500 $ 3,900 $ 20,120 Short question 1 The equity of a company represe...