Question 1

Determine what accounts are affected by what amounts and indicate whether it is an increase (+), decrease (), or there is no effect (0) in each of the following cases.

Sept. 6             Invested $35,000 cash and $2,000 of supplies into the start-up of the business

Sept. 8             Received $21,000 cash for lawn care services provided to customers

Sept. 10           Purchased machinery on account for $18,500 from Sears Corporation

Sept. 12           Paid $3,750 for supplies bought

Sept. 15           Paid $17,500 for land acquired

Sept. 17           Paid $10,000 on account for the machinery previously purchased from Sears

Sept. 19           Paid telephone bill for $1,000

Sept. 21           Paid $1,500 for supplies

Sept. 21           Paid $3,500 for additional machinery

Sept. 22           Received $23,500 for services rendered

Sept. 26           Withdrew $10,000 cash for personal use

Sept. 30           The inventory of supplies showed a balance of $3,000 on hand


You are required to record the effect of each transaction in the table provided below.

Question 2

You have been recently appointed as the accountant for Gone Clear Company. Prepare an income statement based on the following transactions:

Service Revenue                     $190,000

Supplies Expense                     $  80,000

Salary & Wage                                    $  60,000

Administrative Expense          $  30,000

Miscellaneous Expense           $    5,000

Question 3

Based on Question 2 above (Gone Clear Company), what would the net income or net loss be if, in addition to the listed expenses, there was an additional $25,000 for office rent?

P.S. We also provide custom writing help such as week-wise homework, Mid Term, Final Exam and assignment help for ACCT 500. Please feel free to reach out to us on Top quality paper/Grades are assured.

Please click on the “PURCHASE” link below to get “ACCT 500 Essentials of Accounting Finance and Economics Week 2 Problem Set Answer“.

For instant digital download of the above solution or tutorial, please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link.

In case you find any problem in getting the download link or downloading the tutorial, please send us an email on

Leave a Comment