The Education of Eplementary School

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Submitted By cylf20
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Case: BGC Consulting Name:________________________ ID:__________________ Note: This assignment is due September 24, 2013.
Bill Sanders started a part-time consulting practice, Business Global Consulting (BGC), on January 1, 2011. Part A: BGC experienced the following transactions during 2011. 1. Acquired $3,000 cash from issuing common stock. 2. Purchased a $2,000 computer system. 3. Paid $100 cash for supplies. 4. Paid $360 cash for an insurance policy that covered the company for one year beginning March 1, 2011. 5. Recognized $2,800 of consulting revenue for services provided on account. 6. Collected $2,200 of the receivables due from customers. 7. Recognized $1,750 of accrued operating expenses, other than supplies and insurance, that were charged on account (record the liability in accounts payable). 8. Paid suppliers $900 of the amount owed on the accounts payable. 9. On November 1, 2011, Sanders collected $2,880 cash in advance for services to be provided under a one-year contract. 10. Paid dividends of $200 to the stockholders. 11. Purchased land for $2,460 cash. 12. Recognized depreciation expense. The computer was purchased on January 1, 2011. It had a three-year useful life and a $200 salvage value. 13. Recognized supplies expense. Based on a physical count, there were $20 of supplies on hand at the close of business on December 31, 2011. 14. Recognized insurance expense for ten months. 15. Recognized income earned on the service contract described in Event No. 9. Part B: BGC experienced the following transactions during 2012: 1. Acquired additional common stock for $1,000 cash. 2. Sold the land that it owned for $2,900 cash. 3. Paid cash to purchase $125 of supplies. 4. Borrowed $3,000 cash from a local bank. 5. Paid $420 cash to renew the insurance policy for another one-year term. 6. Recognized revenue of $4,700 for services…...

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