Activity No. 04 - Transaction Effects on the Basic Accounting ModelInstruction: For each transaction, indicate whether the assets (A), liabilities (L) or owner'sequity (OE) increased (+), decreased (-) or did not change (0) by placing the appropriate sign inthe appropriate column. The first one is done for you.ItemBought equipment, paying cash.TransactionAOEPaid the monthly rent expense.32Purchased supplies on credit.4Made an additional investment in theentity.5Charged customers for services providedon account.6Paid creditor on account.7Received payment from customers onJaccount.Received cash for services rendered today.Permanently reduced his investment in thebusiness by taking out cash.10Paid salaries for the week.11Acquired equipment, paying 50% down,the balance due in 30 days.

Name: Activity No. 04 - Transaction Effects on the Basic Accounting ModelIn
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Activity No. 04 - Transaction Effects on the Basic Accounting ModelInstruction: For each transaction, indicate whether the assets (A), liabilities (L) or owner'sequity (OE) increased (+), decreased (-) or did not change (0) by placing the appropriat

Accounting equation says that total assets should always be equals to total liabilities and…

Business

Accounting

Activity No. 04 - Transaction Effects on the Basic Accounting Model Instruction: For each transaction, indicate whether the assets (A), liabilities (L) or owner's equity (OE) increased (+), decreased (-) or did not change (0) by placing the appropriate sign in the appropriate column. The first one is done for you. Item Bought equipment, paying cash. Transaction A L OE Paid the monthly rent expense. Purchased supplies on credit. 4 Made an additional investment in the entity. 5 Charged customers for services provided on account. Paid creditor on account. 7 6 Received payment from customers on account. Received cash for services rendered today. Permanently reduced his investment in the business by taking out cash. 10 Paid salaries for the week. 11 Acquired equipment, paying 50% down, the balance due in 30 days.

Activity No. 04 - Transaction Effects on the Basic Accounting Model Instruction: For each transaction, indicate whether the assets (A), liabilities (L) or owner's equity (OE) increased (+), decreased (-) or did not change (0) by placing the appropriate sign in the appropriate column. The first one is done for you. Item Bought equipment, paying cash. Transaction A L OE Paid the monthly rent expense. Purchased supplies on credit. 4 Made an additional investment in the entity. 5 Charged customers for services provided on account. Paid creditor on account. 7 6 Received payment from customers on account. Received cash for services rendered today. Permanently reduced his investment in the business by taking out cash. 10 Paid salaries for the week. 11 Acquired equipment, paying 50% down, the balance due in 30 days.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter1: Starting A Proprietorship: Changes That Affect The Accounting Equation

Section1.2: How Business Activities Change The Accounting Equation

Problem 1OYO

See similar textbooks

Similar questions

Identify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accumulated Depreciation B. Buildings C. Depreciation Expense D. Equipment E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. Supplies Expense I. Dividends
Cornerstone Exercise 2-23 Debit and Credit Procedures Refer ID the accounts listed below. a. Accounts Payable e. Equipment b. Accounts Receivable f. Common Stock c. Retained Earnings g. Salary Expense d. Sales h. Repair Expense Required: For each of the acmums1 complete the following table by entering the normal balance of the account (debit or credit) and the word increase or decrease in the debit and credit columns.
Multiple-step income statement On March 31, 20Y5, the balances of the accounts appearing in the ledger of Lange Daughters Inc. are as follows: a. Prepare a multiple-step income Statement for the year ended March 31, 20Y5. b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.
List the classification of each of the following accounts as A (asset), L (liability), OE (owners equity), R (revenue), or E (expense). Write Debit or Credit to indicate the increase side, the decrease side, and the normal balance side. PART 1: The Accounting Cycle for a Service Business: Analyzing Business Transactions
Identify which of the following accounts would be listed on the companys Post-Closing Trial Balance. A. Accounts Receivable B. Accumulated Depreciation C. Cash D. Office Expense E. Note Payable F. Rent Revenue G. Retained Earnings H. Unearned Rent Revenue
CASH, MODIFIED CASH, AND ACCRUAL BASES OF ACCOUNTING Prepare the entry for each of the following transactions, using the (a) cash basis, (b) modified cash basis, and (c) accrual basis of accounting. 1. Purchase supplies on account. 2. Make payment on asset previously purchased. 3. Purchase supplies for cash. 4. Purchase insurance for cash. 5. Pay cash for wages. 6. Pay cash for phone expense. 7. Pay cash for new equipment. End-of-Period Adjusting Entries: 8. Wages earned but not paid. 9. Prepaid item purchased, partly used. 10. Depreciation on long-term assets.
Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Recognition Historical cost Current value Cash basis Accrual basis Revenues Revenue recognition principle Matching principle Expenses Adjusting entries Straight-line method Contra account Deferral Deferred expense Deferred revenue Accrual Accrued liability Accrued asset Accounting cycle Work sheet Real accounts Nominal accounts Closing entries Interim statements A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries. Inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or conducting other activities. Journal entries made at the end of a period by a company using the accrual basis of accounting. Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss and the dividends to Retained Earnings. A liability resulting from the receipt of cash before the recognition of revenue. The name given to balance sheet accounts because they are permanent and are not closed at the end of the period. An asset resulting from the recognition of a revenue before the receipt of cash. The amount of cash or its equivalent that could be received by selling an asset currently. The assignment of an equal amount of depreciation to each period. Cash has been paid or received but expense or revenue has not yet been recognized. A system of accounting in which revenues are recognized when a performance obligation is satisfied and expenses are recognized when incurred. Cash has not yet been paid or received but expense has been incurred or revenue recognized. Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration. Revenues are recognized in the income statement when a performance obligation is satisfied. The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like. An asset resulting from the payment of cash before the incurrence of expense. The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period. A system of accounting in which revenues are recognized when cash is received and expenses are recognized when cash is paid. A liability resulting from the recognition of an expense before the payment of cash. The association of revenue of a period with all of the costs necessary to generate that revenue. An account with a balance that is opposite that of a related account. The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets. Outflows of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities. A series of steps performed each period and culminating with the preparation of a set of financial statements.
Indicate whether each of the following accounts has a normal debit or credit balance. A. prepaid landscaping expense B. common stock C. delivery vans D. maintenance expense E. retained earnings F. office supplies G. revenue earned H. accounts payable I. unearned painting revenue J. interest payable
Determine on which financial statement each account listed below is reported. Use the following abbreviations: Income Statement (IS), Statement of Owners Equity (OE), and Balance Sheet (BS). a. S. Beagle, Capital b. Cash c. Miscellaneous Expense d. Accumulated Depreciation, Equipment e. Wages Payable f. S. Beagle, Drawing g. Equipment h. Supplies i. Depreciation Expense j. Supplies Expense k. Service Fees l. Accounts Receivable
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
Indicate on which financial statement the following accounts (from the adjusted trial balance) would appear: (A) Sales Revenue; (B) Unearned Rent Revenue; (C) Prepaid Advertising; (D) Advertising Expense; (E) Dividends; (F) Cash.
State whether the balance in each of the following accounts increases with a debit or a credit. A. Office Supplies B. Retained Earnings C. Salaries Expense D. Accounts Receivable E. Service Revenue