Doug Allen Has Decided to Go into the Insect Extermination $\$ 35,000$

question 65

Essay

Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service.The following transactions were completed during the first month of operations,May,20--.
Enter the transactions in the T accounts,then enter the total of each column.If an account has entries on both sides,determine the balance and enter it on the side with the larger total.
1. Doug invested $\$ 35,000$ cash in the business.
2. Purchased extermination equipment for $\$ 17,000$ in cash.
3. Paid $\$ 700$ rent for garage and office quaters.
4. Purchased chemicals (expense) for $\$ 1,100$ from Low Glow Chem Co. on account.
5. Received $\$ 1,600$ revenue for extermination service.
6. Paid telephone bill, $\$ 120$
7. Paid assistant's salary, $\$ 700$ .
8. Earned $\$ 980$ revenue for extermination service, on account.
9. Paid electric bill, $\$ 230$ .
10. Paid for truck repairs (expense), $\$ 145$ .
11. Paid $\$ 600$ to Low Glow Chem Co., on account.
12. Paid $\$ 131$ for gas and oil for truck (expense).
13. Received $\$ 1,400$ revenue for extermination service.
14. Received $\$ 500$ for services previously earned on account in transaction (8).
15. Paid assistant's salary, $\$ 900$ . ​
$\begin{array}{lll}\text {Cash }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Accounts Receivable }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Extermination Equipment }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Accounts Payable }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {D. Allen, Capital}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Extermination Revenue}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text { Rent Expense}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text { Wages Expense}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Truck Expense }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Electricity Expense }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Telephone Expense }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ $\begin{array}{lll}\text { Chemical Expense}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$

Identify and differentiate between mutually exclusive and independent projects.

Understand the limitations and applications of the payback period method in capital budgeting.

Calculate and interpret the average accounting return (AAR) for project assessment.

Evaluate projects using the discounted payback rule.

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Definitions:

Mental Age

A measure of an individual's cognitive ability expressed as the age at which an average person reaches the same level of cognitive performance.

Emotional Quotient

A measure of a person's ability to recognize, understand, and manage their own emotions and those of others.

Chronological Age

The actual age of a person or object as measured in years from the date of birth or creation.

Word-recognition Method

A teaching strategy emphasizing the identification and understanding of words in isolation to improve reading skills.