Other
Econ 102 Chapter 3 Homework
- Course
- Econ 102
- Institution
- Queens College
ECON 102 HW - Chap 3: The Accounting Cycle Capturing Economic Events
[Show more]
Content preview
Chapter 3 HW1. Glenn Grimes is the founder and president of Heartland Construction, a real estate
development venture. The business transactions during February while the company was
being organized are listed as follows.
Feb. 1 Grimes and several others invested $600,000 cash in the business in exchange for 30,000
shares of capital stock.
Feb. 10 The company purchased office facilities for $360,000, of which $120,000 was applicable
to the land and $240,000 to the building. A cash payment of $72,000 was made and a note
payable was issued for the balance of the purchase price.
Feb. 16 Computer equipment was purchased from PCWorld for $14,400 cash.
Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $10,800. A
$1,200 cash payment was made at the time of purchase, and an agreement was made to pay the
remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did
not require that Heartland sign a promissory note.
Feb. 22 Office supplies were purchased from Office World for $360 cash.
Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February
16. The unit should have cost only $359, but Heartland was charged $395. PCWorld promised to
refund the difference within seven days.
Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office
furnishings purchased on February 18.
Feb. 28 Received $36 from PCWorld in full settlement of the account receivable created on
February 23.
a. Prepare journal entries to record the above transactions. Select the appropriate
account titles from the following chart of accounts:
, b. Indicate the effects of each transaction on the company's assets, liabilities, and
owners' equity for the month of February. The Feb. 1 transaction is provided for
you.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller anyiamgeorge19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now