ACCT 116A

Partially Online

Fall 2016

Exercise 1
20 points
Read all directions carefully and complete all requirements of this exercise in either a Word or Excel
document type. No other format will be accepted. You will have until Sunday, September 18th, 2016, at
11:59 p.m. to turn in this assignment to Blackboard ASSIGNMENTS area. Make sure to have proper
formatting, show all math and formulas where required, and be specific with account names. Chapters 1
and 2 would be helpful when preparing this exercise.
Requirement 1: Prepare general journal entries for the following transactions of a new company called
Sunrise Kitchen Appliances.
Sept 1

Sarah Hill, the owner, invested $40,000 cash and $20,000 of equipment in the company
in exchange for common stock.

Sept 4

The company paid $6,000 cash in advance for rent for the next six months.

Sept 8

The company purchased $500 of supplies on credit.

Sept 10

The company billed a customer $650 for kitchen appliances provided to the customer,
on credit.

Sept 14

The company paid in full with cash for the transaction on September 8.

Sept 19

The customer paid in full with cash for the transaction on September 10.

Sept 22

The company paid $1,000 cash for September utilities.

Sept 30

The company immediately received $450 cash from a customer for kitchen appliances
provided to the customer.

Requirement 2: Post the general journal entries prepared from requirement 1 to T accounts (which will
serve as the ledger). Make sure to have final balances at the bottom of each T account and prepare the
format similar to Exhibit 2.13 in your book.
Requirement 3: Prepare Sunrise Kitchen Appliances trial balance for the month of September.
Remember this is a statement and must look like one.
General rubric:
Requirement 1 is worth 8 points total.
Requirement 2 is worth 6 points total.
Requirement 3 is worth 6 points total.

It is at the instructors discretion how to grade each assignment.