CH 2 Exercises

CH 2 Exercises - CHAPTER #2 PRINCIPLES OF ACCOUNTING 1....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER #2 – PRINCIPLES OF ACCOUNTING 1. Mary Hall started a real estate agency called Sun Valley Realty. During the first month of operation, the following transactions were completed: 1) Began business by investing the following personal assets at their fair market value: cash, $3500; office equipment, $1500; automobile, $1200; land, $5000; building, $12 000. The Security Bank held a $11 500 mortgage on the land and building at the time of investment. 2) Purchased $50 of office supplies and $125 of office equipment on credit from Office Sup- ply Company Inc. 3) Collected a $500 cash commission from the sale of property. 4) Purchased additional office equipment worth $100 on credit from Office Supply Company Inc. 5) Paid $25 cash for ad in local newspaper. 6) Traded in company automobile along with $2500 in cash for a new automobile. 7) Paid office secretary a salary of $100. 8) Paid Office Supply Company Inc. for supplies and equipment acquired in transaction 2 above. 9) Completed a real estate appraisal for Mr. R. Gregg and sent him a bill of $150. 10) Paid Office Supply Company Inc. for equipment acquired in transaction 4 above. 11) Received $50 from Mr. R. Gregg along with a note in which he promised to pay the rest within a few weeks. 12)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/14/2011 for the course MIME 310 taught by Professor Bilido during the Spring '08 term at McGill.

Page1 / 4

CH 2 Exercises - CHAPTER #2 PRINCIPLES OF ACCOUNTING 1....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online