Accounting I  © 2008 Tibebe Mengistu Source: PEOI

Assignments for Principles of Accounting I Chapter 1

Assignment A-1.1

Below is the balance sheet of XYZ Corporation on August 30, 2007 and it contains the
following items below:

Paid-in-capital $190,000
Notes payable $20,000
Cash $22,000
Accounts Receivable $10,000
Merchandise Inventory $29,000
Land $41,000
Machinery and equipment $20,000
Furniture and fixtures $8,000
Notes payable $8,000
Accounts payable $16,000
Building $230,000
Long-term debt payable $142,000

On August 31, 2007 the following transactions occurred:

A. Paid $6,000 on accounts payable
B. Appraisers valued the remaining value of the land as $240,000
C. Bought machinery and equipment for $14,000 of which $3,000 paid in cash and the rest <' BR> by signing a note.
D. Sold part of the land for $6,000 on account.
E. Issued capital stock as payment for $23,000 of the long-term debt.

Prepare a Balance Sheet for August 31, 2007 that includes the above transactions.

Assignment A-1.2

Assignment Two ABC Pharmacy is a well known drug store in your area. A condensed balance sheet for August 31, 2007 follows ($ in millions):

Assets Cash $ 13 Accounts Receivable 614 Inventories 2,831 Property and other assets 3,646 Total Assets $7,104

Liabilities and Stockholders' Equity Accounts Payable $1,364 Other Liabilities 1,506 Stockholders' equity 4,234 Total Liabilities and Stockholders' Equity $7,104

On September 1 and 2 the following transactions were added:

Issued 1,000,000 shares of common stock to employees for cash, $30.

Issued 1,000,000 shares of common stock for the acquisition of special equipment from a supplier, $45.

Borrowed cash signing a note payable for $12.

Purchased equipment for cash $13.

Purchased inventories on account $90.

Disbursed cash on account (to reduce the accounts payable) $35.

Sold display equipment to retailer on account at cost $1.

Collected cash on account $8.

Prepare a Balance Sheet as of September 2.

Submit assignment

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