1.Equipment Capital 1. The owner invests equipment in the business. 2. The company receives cash from a bank loan. 3. The company repays the bank loan. 4. The company purchases furniture on a cash basis. 5. The company purchases land with written notes. 6. The company sales on account. 7. The company pays the electric bill in cash 8. The company purchases supplies on account. 9. The company repays the supplies. 10. The owner withdraws cash for personal use.

1.Equipment Capital 1. The owner invests equipment in the business. 2. The company receives cash from a bank loan. 3. The company repays the bank loan. 4. The company purchases furniture on a cash basis. 5. The company purchases land with written notes. 6. The company sales on account. 7. The company pays the electric bill in cash 8. The company purchases supplies on account. 9. The company repays the supplies. 10. The owner withdraws cash for personal use.

Name: CREDITDEBIT1.Equipment Capital1. The owner invests equipment in the b
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: CREDITDEBIT1.Equipment Capital1. The owner invests equipment in the business.2. The company receives cash from a bank loan.3. The company repays the bank loan.4. The company purchases furniture on a cash basis.5. The company purchases land with writ

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EA: A business has the following transactions: The business is started by receiving cash from an...

See similar textbooks

Similar questions

Discuss how each of the following transactions will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. A company purchased $450 worth of office supplies on credit. B. The company parking lot was plowed after a blizzard. A check for $75 was given to the plow truck operator. C. $250 was paid on account. D. A customer paid $350 on account. E. Provided services for a customer, $500. The customer asked to be billed.
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500. What is total income for the month?
To purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capital
For the following accounts please indicate whether the normal balance is a debit or a credit. A. Sales B. Dividends C. Office Supplies D. Retained Earnings E. Accounts Receivable F. Prepaid Rent G. Prepaid Insurance H. Wages Payable I. Building J. Wages Expense
ANALYSIS OF T ACCOUNTS Richard Gibbs began a business called Richards Shoe Repair. 1. Create T accounts for Cash; Supplies; Richard Gibbs, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts: (a) Invested cash in the business, 6,500. (b) Purchased supplies for cash, 700. (c) Paid utility bill, 2,700. 2. Foot the T account for cash and enter the ending balance.
CHALLENGE PROBLEM In this chapter, you learned about three important financial statements: the income statement, statement of owners equity, and balance sheet. As mentioned in the margin note on page 34, most firms also prepare a statement of cash flows. Part of this statement reports the cash received from customers and cash paid for goods and services. REQUIRED Take another look at the Demonstration Problem for Kenny Youngs Home and Away Inspections. Note that when revenues are measured based on the amount earned, and expenses are measured based on the amount incurred, net income for the period was 4,165. Now, compute the difference between cash received from customers and cash paid to suppliers of goods and services by completing the form provided below. Are these measures different? Which provides a better measure of profitability?
Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
TRANSACTION ANALYSIS Linda Kipp started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side. (a) Invested cash in the business, 5,000. (b) Bought equipment for cash, 700. (c) Bought equipment on account, 600. (d) Paid cash on account for equipment purchased in transaction (c), 400. (e) Withdrew cash for personal use, 900.
Indicate whether each account that follows has a normal debit or credit balance. A. Unearned Revenue B. Office Machines C. Prepaid Rent D. Cash E. Legal Fees Earned F. Salaries Payable G. Dividends H. Accounts Receivable I. Advertising Expense J. Retained Earning
Identify the following as Operating, Investing or Financing Activity. 1. Cash payment for advertising expense 2. Cash receipts from rental fees 3. Cash payment to acquire land 4. Cash collection from customers 5. Cash payment for amounts borrowed 6. Cash receipts from a bank loan 7. Cash withdrawal of owners 8. Cash received for selling properties 9. Payment to suppliers 10. Payment to long term creditors
identify which of the following transactions fall under operating,investing, and financing activities 1. Cash received from customers2. Cash paid to suppliers3. Cash paid to employees4. Cash paid to purchase equipment (the company does not sell equipment)5. Cash received from the sale of furniture (company’s main line of business is not related to furniture)6. Depreciation expense7. Sale of goods on credit8. Purchase of goods on credit9. Cash received from getting a loan from a bank