action Analysis: Debit and Credit RulesChapAPPLY WHAT YOU HAVE LEARNED2-1. Accounting equation.Use the following table to show the effects of transactions 1-10. Use+ or – and the dollaramount to show the effects. If a transaction affects only one cell, show the dollar amount andboth + and -. The transactions describe events for Copymaster Corporation, a photocopyingbusiness.AssetsLiabilities1. 000Equityt 50602.5.6.7.8.9.10.1. Shareholders invested $5,000 cash to begin the business.2. Copymaster bought a copying machine for $1,500 cash.3. Copymaster sold copies to customers for $500 cash.4. Copymaster produced copies for Fellows Corporation, its customer. The total saleamount was $1,200. Copymaster agreed to bill Fellows for the sale at the end of themonth.bloe5. Copymaster paid employees $600.6. Copymaster bought supplies for $300.7. Copymaster paid rent of $700.8. Copymaster paid utilities of $200.9. Copymaster bought office furniture for $500.10. Copymaster had an unpaid phone bill at month-end for $100.lowbo gid leil atibisg noalost1012-720uaiucels bisgou e badHids dino313.4.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…

Answered: action Analysis: Debit and Credit Rules…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PA: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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Similar questions

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
Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and Unearned Service Revenue B. Electricity Expense and Office Supplies C. Accounts Receivable and Accounts Payable D. Buildings and Common Stock
Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.
From the following list, identify which items are considered original sources: A. accounts receivable B. receipt from post office for post office box C. purchase order D. general ledger E. adjusted trial balance F. statement of retained earnings G. electric bill H. packing slip I. company expense account J. statement of cash flows
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
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?
NORMAL BALANCE OF ACCOUNT Indicate the normal balance (debit or credit) for each of the following accounts: 1. Cash 2. Rent Expense 3. Notes Payable 4. Owners Drawing 5. Accounts Receivable 6. Owners Capital 7. Tools
2. Which of the following on a Balance Sheet would cause concern for you? Use the sample Balance Sheet provided Notes & Comments Current Assets 10350 Bank Chequing $75,992 10857 Visa Credit Card -$226 12000 Accounts Receivable $21,296 13500 Inventory Assets $27,791 14990 Hold Backs -$275 Total Current Assets $124,578 Liabilities & Equity 20000 Accounts Payable $22,063 22100 Unapplied Cash $8,716 29300 Shareholder Loan $24,410 35600 Retained Earnings $52,416 Net Icome (Current Year) $16,873 Total Liabilities & Equity $124,478
Use the following table to show the effects of transactions. Use + or -and the dollar amount to show the effects. If a transaction affects only one cell, show the dollar amount and both + and -. The transactions describe events for Copymaster Corporation.Table is set up as folliowing to record transactionsAssets Liabilities Equity1) Shareholders investd $5,000 each to begin business2) Copymaster bought copying machine for $1,5003) Copymaster sold copies to customers for $500 cash4) Copymaster produces copies for Fellows Corporation, its customer. The total sale amount was $1,200. Copymaster agreed to bill Fellows for the sale at the end of the month5) Copymaster paid employees $6006) Copymaster bought supplies for $3,007) Copymaster paid rent for $7008) Copymaster paid utilities for $2009) Copymaster bought office furniture for $50010) Copymaster had an unpaid phone bil at month-end for $100Please put these in the correct…
The transactions in this problem are identical to those in E1–2, but now with a focus on Wildcat. Transactions Wildcat’s Related Account1. Wildcat issues common stock of Falcon. Common stock2. Wildcat lends to Falcon by accepting a note. Notes receivable3. Wildcat receives services from Falcon. Service fee expense4. Wildcat receives interest from Falcon on lending. Interest revenueRequired:1. For each transaction, indicate whether Wildcat would report the related account in the balance sheet or income statement.2. For accounts in the balance sheet, indicate whether it would be classified as an asset, liability, or stockholders’ equity. For accounts in the income statement, indicate whether it would be classified as a revenue or an expense.3. Indicate whether each transaction is classified as operating, investing, or financing activity.
1. Provide journal entries to record each of the following transactions. For each, using the capital letter only, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). For the journal entry, you must enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Income Statement accounts first, followed by Balance Sheet accounts. Cash Truck Land Loss on Sale of Land Dividends Gain on Sale of Land Accounts Receivable Common Stock Note Payable Declared and paid to shareholders, a dividend of $24,000. DR CR Transaction - Source of cash (S), Use of cash (U), or Neither (N). Issued common stock at par value for $12,000. DR CR Transaction - Source of cash (S), Use of cash (U), or…
What is the normal balance for the following accounts? (Highlight the answer) (For example: Cash Debit Credit) Accounts Receivable Debit Credit Accounts Payable Debit Credit Equipment Debit Credit Service Revenue Debit Credit Prepaid Insurance Debit Credit Expense Debit Credit For each of the transactions in items 2 through 5, indicate the two (or more) effects on the accounting equation of the business or company. (Highlight the answer) Receive payment in cash for outstanding account receivable Assets Increase Decrease No effect Liability Increase Decrease No effect Equity Increase Decrease No effect The company purchases land by paying half in cash and signing a note payable for the other half Assets Increase Decrease No effect…

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