ACC 205 WEEK 1 COMPLETE

ACC 205 WEEK 1 COMPLETE

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Basic Accounting Equations 1. Recognition of normal balances The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's viewpoint. Also indicate the normal account balance of each item. a. The albums, tapes, and CDs held for sale to customers. b. A long-term loan owed to Citizens Bank. c. Promotional costs to publicize a concert. d. Daily sales of merchandise sold, e. Amounts due from customers, f. Land held as an investment, g. A new fax machine purchased for office use. h. Amounts to be paid in 10 days to suppliers, i. Amounts paid to a mall for rent.
2. Basic journal entries The following April transactions pertain to the Jennifer Royall Company: Apr. 1 Jenni¬fer Royall invested cash of $15,000 and land valued at $10,000 into the business. Apr. 5 provided $1,200 of services to Jason Ratchford, a client, on account. Apr. 9 paid $250 of salaries to an employee. Apr. 14 acquired a new computer for $3,200, on account. Apr. 20 collected $800 from Jason Ratchford for services provided on April 5. Apr. 24 borrowed $7,500 from BestBanc by securing a six-month loan. Prepare journal entries (and explanations) to record the preceding transactions and events.
3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 20XX: Building $44,000 Accounts receivable $24,000 Cash 17,000 Loan