Cash 40,000 (2) Equipment 15,000 Dividends 1,500 4,000 (3) (9) (1) (7) 13,100 (3) 5,000 (4) 6,175 (6) 6,000 (9) 1,500 Accounts Receivable 20,500 (7) Accounts Payable Service Revenue (5) (5) 13,100 (6) 6,000 (3) 10,000 20,500 Supplies 4,000 (8) Common Stock (1) Operating Expenses (2) 2,200 40,000 (4) 6,175 (8) 2,200 Account Credited Туре stockholders' equity Account Debited Transaction Туре Effect Effect (1) asset

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13MCQ
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Question

Identifying transactions
Rocky Mountain Tours Co. is a travel agency. The nine transactions
recorded by Rocky Mountain Tours during June 20Y2, its first month of
operations, are indicated in the attached T accounts:

 

Indicate for each debit and each credit: (a) whether an asset, liability,
stockholders' equity, dividend, revenue, or expense account was affected
and (b) whether the account was increased (+) or decreased (-). Present
your answers in the following form, with transaction (1) given as an
example:

Cash
40,000 (2)
Equipment
15,000
Dividends
1,500
4,000 (3)
(9)
(1)
(7)
13,100 (3)
5,000
(4)
6,175
(6)
6,000
(9)
1,500
Accounts Receivable
20,500 (7)
Accounts Payable
Service Revenue
(5)
(5)
13,100 (6)
6,000 (3)
10,000
20,500
Supplies
4,000 (8)
Common Stock
(1)
Operating Expenses
(2)
2,200
40,000 (4)
6,175
(8)
2,200
Transcribed Image Text:Cash 40,000 (2) Equipment 15,000 Dividends 1,500 4,000 (3) (9) (1) (7) 13,100 (3) 5,000 (4) 6,175 (6) 6,000 (9) 1,500 Accounts Receivable 20,500 (7) Accounts Payable Service Revenue (5) (5) 13,100 (6) 6,000 (3) 10,000 20,500 Supplies 4,000 (8) Common Stock (1) Operating Expenses (2) 2,200 40,000 (4) 6,175 (8) 2,200
Account Credited
Туре
stockholders' equity
Account Debited
Transaction
Туре
Effect
Effect
(1)
asset
Transcribed Image Text:Account Credited Туре stockholders' equity Account Debited Transaction Туре Effect Effect (1) asset
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