Question

Remote Homework Assignment 1 (Identify the accounts)

After each transaction list the accounts effected (cash, tools, vehicles, office equipment, vehicle loan, business loan, sales revenue, owner contribution (capital), rent, payroll, utilities, and owner withdraw (WD) and also if the account increases, or decreases, and if it is an asset, liability, OE account.

Juan Martinez decided to start a home improvement and repair business called JAM Construction. During the months of July and August he completed the following transactions.

1) Juan put $5000 of his own money in the company bank account. EXAMPLE

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

2) Juan purchased $1500 worth of tools and paid cash.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

3) Juan bought a truck for $18000 and financed the entire amount.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

4) He completed a home repair project and was paid $800.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

5) Juan bought a laptop so he could keep track of his finances, for which he paid $900.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

6) He also took out a small business loan for $15000.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

7) Juan purchased a $300 power saw.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

8) Juan completed 3 more projects, and was paid, $700, $2200, and $1400 respectively.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

9) He decided to rent a small garage to store his tools and set up an office. He paid the first months rent of $600.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

10) Juan hired Dirk Bogard to work for him. Dirk completed his first week of work and was paid $300.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

11) Juan completed another project and was paid $1100

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

12) Juan made his first truck payment of $400.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

13) Juan bought $200 in office supplies and $500 in tools. He paid cash for both.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

14) Juan decided to withdraw $500 to pay himself.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

15) Dirk competed another week of work and was paid another $300

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

16) Juan made his second rent payment and his second truck payment.

Cash Truck Equipment Office Equip Truck Loan Bus. Loan Capital WD Revenue Expenses

A – If Juan had paid a $200 electric bill which accounts would increase or decrease?

B – If Juan bought a boat for his recreational use which accounts are affected?

C – If juan took personal cash to pay off the balance of the truck loan which accounts are affected.

Answer 1

Please feel free to comment in case of any query. Please upvote.