Assignment 1 HOTE 63 Accounting MM 20 WT 15% 1. Show Effects of transactions on the accounting equation Mailin Moon is a

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Assignment 1
HOTE 63 Accounting MM 20 WT 15%
1. Show Effects of transactions on the accounting equation
Mailin Moon is a freelance writer who submits articles to various magazines and newspapers. She operates out of a small office where she employs one administrative assistant. The following activities occurred during March 2020, her first month of business:
Moon invested $2,500 worth of equipment into her business along with $3,000 cash.
Submitted a series of articles to The Globe and Mail and received $6,500 cash.
Purchased supplies on credit; $600.
Paid the part-time administrative assistant’s salary of $1,450.
Moon ordered $3,000 of office equipment from the IKEA catalogue. It is scheduled to arrive in April or May.
Paid the rent for the first month; $1,400.
Submitted an article to Report on Business; will receive $4,500 next month 7marks
2. Identify the account as an asset, liability, or equity by entering the letter of the account type beside the account name. If the item is an equity account, indicate the type of equity account.
A
=
Asset
L
=
Liability
OE
=
Owner’s Capital (Equity)
W
=
Owner’s Withdrawals (Equity)
R
=
Revenues (Equity)
E
=
Expenses (Equity)
Buildings ------------------------------
Interest Income -------------------------------
Matthew Lee, Withdrawals ---------------------------
Matthew Lee, Capital -------------------------------
Prepaid Insurance -------------------------------------
Interest Payable --------------------------------------
Accounts Receivable -----------------------------------------
Salaries Expense --------------------------------------
Office Supplies -------------------------------------------------
Repair Services Revenue ------------------------------------- 5 marks
3. Record journal entries for the following transactions-
Dee Bell Company had the following transactions in the month of May.
May
2
Dee Bell transferred her personal car valued at $8,000 into the business.
10
Did $4,000 of work for a customer on account.
12
Collected $10,000 from a customer for work to be done in July 2020.
15
Paid wages of $6,000.
16
Collected $4,000 from the customer of May 10.
22
Paid $3,000 of the outstanding accounts payable.
8 marks