Bhoopesh Ltd. gives you these transactions of their Business. Find out their effect on its Assets, Liabilities and Capital by using an Accounting Equation. 1. Capital invested of amount $ 40,000 in the form of Cash 2. Purchased Shares worth $ 8,500 in the form of Cash 3. Bought a House of value $ 25,000 by paying $ 10,000 in Cash and balance by taking a Housing Loan. 4. Additional capital introduced for $ 14,000 entirely in the form of Cash only 5. Loan taken from Rahul for Working Capital requirements of $ 15,000

Bhoopesh Ltd. gives you these transactions of their Business. Find out their effect on its Assets, Liabilities and Capital by using an Accounting Equation. 1. Capital invested of amount $ 40,000 in the form of Cash 2. Purchased Shares worth $ 8,500 in the form of Cash 3. Bought a House of value $ 25,000 by paying $ 10,000 in Cash and balance by taking a Housing Loan. 4. Additional capital introduced for $ 14,000 entirely in the form of Cash only 5. Loan taken from Rahul for Working Capital requirements of $ 15,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,...

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Determine the following amounts: a. The amount of the liabilities of a business that has 60,800 in assets and in which the owner has 34,500 equity. b. The equity of the owner of a tour bus that cost 57,000 and on which is owed 21,800 on an installment loan payable to the bank. c. The amount of the assets of a business that has 11,780 in liabilities and in which the owner has 28,500 equity.
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.
R. Nelson invests his personal computer, with a fair market value of 2,500, in the business. How would this transaction be recorded? a. A debit to R. Nelson, Capital, 2,500. b. A credit to Cash, 2,500. c. A credit to Professional Fees, 2,500 d. A debit to Computer, 2,500.
A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
During December of this year, G. Elden established Ginnys Gym. The following asset, liability, and owners equity accounts are included in the chart of accounts: During December, the following transactions occurred: a. Elden deposited 35,000 in a bank account in the name of the business. b. Bought exercise equipment for cash, 8,150, Ck. No. 1001. c. Bought advertising on account from Hazel Company, 105. d. Bought a display rack on account from Cyber Core, 790. e. Bought office equipment on account from Office Aids, 185. f. Elden invested her exercise equipment with a fair market value of 1,200 in the business. g. Made a payment to Cyber Core, 200, Ck. No. 1002. h. Sold services for the month of December for cash, 800. Required 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit. 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction. 4. Foot and balance the accounts.
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?
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Which of the following transactions changes only the mix of assets and does not affect liabilities or stockholders’ equity? A. Borrowed $40,000 from First National Bank B. Purchased land for $50,000 cash C. Received $3,800 for fees earned D. Paid $4,000 for Office salaries
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Show that the accounting equation is satisfied after taking into consideration each of the following transactions in the books of Mr. N 1. Started business with capital 1,00,000 2. Bought furniture 25,000 3. Bought goods for cash 20,000 4. Bought goods from Ram on Credit 5,000 5. Sold goods for cash for 15,000 6. Sold goods to Shyam on credit 8,000 7. Paid cash to Ram 4,000 8. Received cash from Shyam 5,000 9. Paid Cash into Bank 25,000 10. Withdrawn from bank 10,000
Accounting Concepts Record the effect of the following transactions on the accounting equation using atable similar to the example (page 18).a. Owen inherited $20,000 and invested the cash in the business.b. Performed services for a client and received cash of $700.c. Purchased supplies on account, $1,000d. Invested personal cash of $1,000 in the business.e. Performed services to clients and received cash of $2,400f. Paid office rent expenses, $ 900 and advertising expense $100.g. Withdrew cash of $1,800 for personal use. Prepare Income Statement and Balance Sheet.