Directions: For each of the events below, identify if it is an accounting event.
ID: 2539724 • Letter: D
Question
Directions: For each of the events below, identify if it is an accounting event. For all accounting events, identify who performed, & how they performed. Besiness Description: Jim Wooldridge decides to start a new business, Wooly Consulting, a firm specializing in placing out of work coaches with jobs, giving coaching seminars, and public speaking engagements. During the month of June 20xx, he completed the transactions below Who Performed? (Mark all that apply) How did they Perform? Mark all that apply) Accounting Date Event Description 6/1 Event? Yes No BusinessOther Party Provided Goods Paid 1 Jim started his business by contributing $4,200 of equipment and $8,000 cash to the business. He applied for and purchased new reditar, by paying usiness cash and No[ Other Party Prov dedGods Provided Goods 26/1jim purchased a $20,000 car by paying S4,000 cash and 6/1 Yes Yes No Business Business Other Party hid Paid 2 signed a note for the balance. The note requires a 10% APR interest cost. [ Provided Goods »ProvidedGoods No Business Other Party Paid Yes 6/1 6/2 6/3 6/5 3 Jim purchased a S900 computer and S200 supplies on open account; payment terms 1/10, n/30. Jim bought $55 of gasoline for the car on the new credit card Jim's first customer, Larry Brown, prepays for a job search. Larry pays $3,000 cash in advance. Jim receives $500 cash for a speaking engagement. Jim hires a former player of his, "Hoops" Wilson, as an assistant, to be paid $10 an hour. Jim put travel expenses for a motel room and food on the credit card, $445. Jim receives a bill for an ad he ran last week in a magazine advertising Wooly Consulting. The bill is for $220, due in 10 days. There is an 18% APR interest charge on overdue accounts. Yes No Business Other Party Paid 4 Proded Goods Provided Goods Provided Goods Paid No Business No Business NoBusiness Other Party -Other Party Other Party Yes 5 Yes Paid 6 Paid 6/7 6/8 6/9 Yes Des es 7 NoBusiness No Business Provided Goods |Provided Goods Paid Paid Other Party 8 other Party 9 Paid Des NoBusiness Other Party Dr vided Goods 10 6/10 Jim purchased $140 of office supplies at Staples, payingExplanation / Answer
Serial no.
Date
Brief event description
Accounting event
Who performed
How did they perform
1
01-Jun
Jim started his business by contribution of equipment and cash
Yes
Business
Paid
2
01-Jun
Jim purchased a car
Yes
Business
Paid
3
01-Jun
Jim purchased computer and supplies
Yes
Business
Paid
4
02-Jun
Jim brought gasoline
Yes
Business
Paid
5
03-Jun
Jim’s customer pays advance for job search
Yes
Business
Provided goods
6
05-Jun
Jim receives cash
Yes
Business
Provided goods
7
07-Jun
Jim hires an assistant
Yes
Business
Paid
8
08-Jun
Jim put travelling expenses
Yes
Other party
Paid
9
09-Jun
Jim receives a bill
Yes
Business
Paid
10
01-Jun
Jim purchased office supplies
Yes
Business
Paid
Note: Here it has been assumed that Jim and business are not two different persons as the business is a sole proprietorship organization Jim and business has been considered as one. Thus, the expenditures incurred by Jim has been considered as business expenditures and similarly the cash received by Jim has been considered the revenue of the business. However, in case of motel expenses of $445 it has not been considered as business income rather personal expenditures of Jim.
Serial no.
Date
Brief event description
Accounting event
Who performed
How did they perform
1
01-Jun
Jim started his business by contribution of equipment and cash
Yes
Business
Paid
2
01-Jun
Jim purchased a car
Yes
Business
Paid
3
01-Jun
Jim purchased computer and supplies
Yes
Business
Paid
4
02-Jun
Jim brought gasoline
Yes
Business
Paid
5
03-Jun
Jim’s customer pays advance for job search
Yes
Business
Provided goods
6
05-Jun
Jim receives cash
Yes
Business
Provided goods
7
07-Jun
Jim hires an assistant
Yes
Business
Paid
8
08-Jun
Jim put travelling expenses
Yes
Other party
Paid
9
09-Jun
Jim receives a bill
Yes
Business
Paid
10
01-Jun
Jim purchased office supplies
Yes
Business
Paid
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