Pandey, Incorporated had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory note. B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000. C. Rented equipment at a cost of $10,000 per month and issued a check covering rent for six months. D. Provided $104,000 of services and billed customers. E. Purchased $30,000 of supplies on account. F. Received a utility bill for the current period in the amount of $1,200. G. Raised sales prices on 200 units from $400 per unit to $440 per unit. H. Received a 50% deposit from a customer on a $20,000 order to be filled next month. Required: Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (-) sign before each number to show its effect on the accounting equation. If the activity should not be recorded as a transaction, enter the word "None" in the first column for that activity. (Enter all amounts as positive values.) A B B C C D E F G H Account(s) Assets Amount Account(s) Liabilities Amount + Stockholders' Equity Account(s) Amount
Pandey, Incorporated had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory note. B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000. C. Rented equipment at a cost of $10,000 per month and issued a check covering rent for six months. D. Provided $104,000 of services and billed customers. E. Purchased $30,000 of supplies on account. F. Received a utility bill for the current period in the amount of $1,200. G. Raised sales prices on 200 units from $400 per unit to $440 per unit. H. Received a 50% deposit from a customer on a $20,000 order to be filled next month. Required: Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (-) sign before each number to show its effect on the accounting equation. If the activity should not be recorded as a transaction, enter the word "None" in the first column for that activity. (Enter all amounts as positive values.) A B B C C D E F G H Account(s) Assets Amount Account(s) Liabilities Amount + Stockholders' Equity Account(s) Amount
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts
Section: Chapter Questions
Problem 4PA: On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are...
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Transcribed Image Text:Pandey, Incorporated had the following activities during the month:
A. Borrowed $7,000,000 cash, signing a promissory note.
B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000.
C. Rented equipment at a cost of $10,000 per month and issued a check covering rent for six months.
D. Provided $104,000 of services and billed customers.
E. Purchased $30,000 of supplies on account.
F. Received a utility bill for the current period in the amount of $1,200.
G. Raised sales prices on 200 units from $400 per unit to $440 per unit.
H. Received a 50% deposit from a customer on a $20,000 order to be filled next month.
Required:
Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by
completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (-) sign before each number to
show its effect on the accounting equation. If the activity should not be recorded as a transaction, enter the word "None" in the first
column for that activity. (Enter all amounts as positive values.)
A
B
B
C
C
D
E
F
G
H
Account(s)
Assets
Amount
Account(s)
Liabilities
Amount
+
Stockholders' Equity
Account(s)
Amount
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