Section 2 Inclass Quiz Solution

# Section 2 Inclass Quiz Solution - Sept 28 Took out a \$300...

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Acc 200P Name: ________________________ Lab Section #_________________ Section 2 – Cash Basis of Accounting SOLUTION Tony S., a student at NCSU, decided to start his own computer repair business. Tony set up his business as a C-Corporation. Tony services his customers by going directly to their houses. Using the cash basis of accounting, enter the following transactions in the transaction analysis worksheet below: Sept 1 Pack Computer Repairs was started when Tony invested \$400 cash into his business. Sept 2 Paid \$50 for a business license. Sept 5 The company paid \$75 for supplies. Sept 10 Paid advertising of \$50. Sept 18 Received cash from customers for work performed totaling \$500. Sept 25 Paid \$30 for gas costs incurred during travel to customers.
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Unformatted text preview: Sept 28 Took out a \$300 short-term loan from the bank. Sept 30 Paid dividends of \$100. ASSETS LIABILITIES OWNER’S EQUITY Details of Changes in RE Cash Note Payable CC RE Sept 1 + 400 + 400 Sept 2 (50) (50) License Expense Sept 5 (75) (75) Supplies Expense Sept 10 (50) (50) Advert. Expense Sept 18 + 500 + 500 Revenue Sept 25 (30) (30) Gas Expense Sept 28 + 300 + 300 Sept 30 (100) (100) Dividend Balances 895 300 400 195 REQUIRED : After entering the above transactions, calculate the following: net income, total assets, total liabilities, and total owner’s equity. Net Income: \$__ 295 ________ Total Assets: \$_ 895 _______ Total Liabilities: \$_ 300 ______ Total Owner’s Equity: \$__ 595 ____...
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## This note was uploaded on 11/22/2010 for the course ACC 200 taught by Professor Buckless during the Spring '08 term at N.C. State.

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