Module

 2_Seatwork  No.  1    
ANALYSIS  OF  TRANSACTIONS  
 
 
I.   Party  Time  Amusements  Case  (20  pts)  
 
II.   Given  the  following  transactions  of  E-­‐‑Learning  Agency  for  the  first  month  of  its  operations  (January  
2020)  (40  pts)  
1.   The  E-­‐‑learning  agency  received  $30,000  cash  and  gave  capital  to  the  owner.    
2.   Paid  $20,000  cash  for  land  
3.   Bought  $500  of  office  supplies  on  account.  
4.   Received  $5,500  cash  from  clients  for  service  revenue  earned.  
5.   Performed  travel  service  for  clients  on  account,  $3,000  
6.   Paid  cash  expenses:    computer  rent,  $600;  office  rent,  $1,100;  employee  salary,  $1,200;  utilities,  $400  
7.   Paid  $300  on  the  accounts  payable  created  in  transaction  3.  
8.   Collected  $1,000  on  the  accounts  receivable  created  in  transaction  5.  
9.   Sold  land  for  cash  at  its  cost  of  $9,000.  
10.      Owner  withdrew  $2,000  

Required:  
a.   Analyze  the  transactions  above  
b.   Journalize  your  analysis  
c.   Prepare  T-­‐‑accounts    
d.   Prepare  trial  balance  of  E-­‐‑Learning  Agency  for  the  month  ended  January  31,  2020  
e.   Prepare  income  statement  of  E-­‐‑Learning  Agency  for  the  month  ended  January  31,  2020  
f.   Prepare  the  balance  sheet  of  E-­‐‑Learning  Agency  as  of    January  31,  2020  

III.   The  following  pertains  to  transactions  of  SSS  enterprise  for  the  first  quarter  of  2020.  (40  pts)  

DATE                                                                                      TRANSACTIONS  
Jan.  1   SSS  Enterprise  invested  $200,000  of  cash  into  the  business.      
Jan.  2   Purchased  a  $10,000  12-­‐‑month  insurance  policy.        
Purchased  equipment  for  $15,000,  paying  $5,000  cash,  and  signing  a  note  for  the  
Jan.  15   difference  
Jan.  30   Wages  of  $9,000  were  paid  to  employees.          
Feb.  4   Purchased  supplies  for  $1,200  on  account.          
Feb.  20   Received  $12,000  in  cash  for  services  performed.        
Feb.  25   SSS  Enterprise  withdrew  $3,000  for  personal  use.        
Feb.  28   Paid  the  outstanding  balance  for  the  January  15  purchase.      
Mar-­‐‑17   Paid  for  supplies  purchased  on  February  4.          
Mar-­‐‑25   Performed    services  on  account  for  $2,200.        
Mar-­‐‑30   $20,000  was  paid    in  wages  to  employees.          
Mar-­‐‑31   Received  and  paid  March  telephone  bill,  $200.        
Mar-­‐‑31   Received  payment  for  services  provided  on  March  25.      
Mar-­‐‑31   Billed    a  customer  $600  for  repair  services.          
Mar-­‐‑31   Paid  $150  for  March  advertising.          
                 
Required:  
a.   Analyze  the  transactions  above  
b.   Journalize  your  analysis  
c.   Prepare  T-­‐‑accounts    
d.   Prepare  trial  balance  of  SSS  Enterprise  for  the  quarter  ended  March  31,  2020  
e.   Prepare  income  statement  of    SSS  Enterprise  for  the  quarter  ended  March  31,  2020  
f.   Prepare  the  balance  sheet  of  E-­‐‑Learning  Agency  as  of  March  31,  2020