A chart of accounts does NOT include

a) assets
c) owners equity
b) liabilities
d) names of customers

Annette Creighton opened Creighton Consulting. She rented a small office and paid a part-time worker to answer the telephone and make deliveries. Her chart of accounts is as follows:

$$\text { Chart of Accounts }$$

Jan. 1 Creighton invested cash in the business, $10,000. 1 Paid rent,$500. 2 Purchased office supplies on account, $300. 4 Purchased office equipment on account,$1,500. 6 Received cash for services rendered, $580. 7 Paid telephone bill,$42. 8 Paid utilities bill, $38. 10 Received cash for services rendered,$360. 12 Made payment on account, $50. 13 Paid for car rental while visiting an out-of-town client (transportation expense),$150. 15 Paid part-time worker, $360. 17 Received cash for services rendered,$420. 18 Creighton withdrew cash for personal use, $100. 20 Paid for a newspaper ad,$26. 22 Reimbursed part-time employee for cab fare incurred delivering materials to clients (transportation expense), $35. 24 Paid for books on consulting practices (miscellaneous expense),$28. 25 Received cash for services rendered, $320. 27 Made payment on account for office equipment purchased,$150. 29 Paid part-time worker, $360. 30 Received cash for services rendered,$180.

REQUIRED

1. Set up general ledger accounts from the chart of accounts.
2. Journalize the transactions for January in a two-column general journal. Use the following journal page numbers: January 1–10, in the given page; January 12–24, in the given page; January 25–30, in the given page
3. Post the transactions to the general ledger.
4. Prepare a trial balance.
5. Prepare an income statement and a statement of owner’s equity for the month of January and a balance sheet as of January 31, 20--.

The accounts in the chart of accounts are arranged in?

a) alphabetical order
b) numerical order
c) date order
d) any order

Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruction.

On June 1, 2020, a depreciable asset was acquired for $6,840. The asset has an estimated useful life of 6 years or 72 months and no salvage value using the straight-line depreciation method. Calculate the book value as of December 31, 2020.

Which of the following is not included in the computation of the quick ratio?

a. inventory
b. marketable securities
c. accounts receivable
d. cash

Foot and balance the cash T account shown below.

Label each of the following accounts as an asset (A), liability (L), owner’s equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongs—income statement (IS), statement of owner’s equity (SOE), or balance sheet (BS)—in a format similar to the following

Label each of the following accounts as an asset (A), liability (L), owner's equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongs-income statement (IS), statement of owner's equity (SOE), or balance sheet (BS)-in a format similar to the following.

Is it True or False?

A country can have a comparative advantage in the production of a good even if it does not have an absolute advantage in the production of that good.

Which law governs the lease of the goods?

What is the difference between common law and statutory law?

Source documents trigger the analysis of events requiring an accounting entry. Match the following source documents with the type of information they provide.

a. A good or service has been sold. b. Cash has been received by the business. c. Cash has been paid by the business. d. Goods or services have been purchased by the business.

1. Check stubs or check register
2. Purchase invoice from suppliers (vendors)
3. Sales tickets or invoices to customers
4. Receipts or cash register tapes

Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a part-time assistant to answer the phone and handle third-story work. (Lisa is afraid of heights.) The transactions for the month of July are as follows:

(a) On the first day of the month, Vozniak invested cash by making a deposit in a bank account for the business, $8,000. (b) Paid rent for July,$150. (c) Purchased a used van for cash, $5,000. (d) Purchased tools on account from Clean Tools,$600. (e) Purchased cleaning supplies that cost $300. Paid$200 cash and will pay the balance next month, $100. (f) Paid part-time assistant (wages) for first half of month,$100. (g) Paid for advertising, $75. (h) Paid two-year premium for liability insurance on van,$480. (i) Received cash from clients for services performed, $800. (j) Performed cleaning services for clients on account,$500. (k) Paid telephone bill, $40. (l) Received cash from clients for window cleaning performed on account in transaction (j),$200. (m) Paid part-time assistant (wages) for last half of month, $150. (n) Made partial payment on tools purchased in transaction (d),$200. (o) Earned additional revenues amounting to $800:$600 in cash and $200 on account. (p ) Vozniak withdrew cash at the end of the month for personal expenses,$100.

REQUIRED

1. Enter the above transactions in an accounting equation similar to the one illustrated below.

2. After transaction (p), compute the balance of each account.
3. Prepare an income statement for We Do Windows for the month of July 20--.
4. Prepare a statement of owner’s equity for We Do Windows for the month of July 20--.
5. Prepare a balance sheet for We Do Windows as of July 31, 20--.