Please do not give solution in image format thanku B(a)Post the transactions to T-accounts. (Post entries in the order presented in the problem statement.)CashAccounts ReceivableEquipmentAccounts ReceivableEquipmentNotes PayableOwner's CapitalService Revenue7750 >Siete ansactions from the journal of June Swifty, investment broker, are presented as follows.DateAug 1101225Account Titles and ExplanationCashOwner's CapitalCashService Revenue(Received cash for services performed)EquipmentCash(Owner's investment of cash in business)Notes Payable(Purchased equipment for cash and notes payable)Accounts ReceivableService Revenue10 Cash122531Service Revenue(Received cash for services performed)EquipmentCashNotes Payable(Purchased equipment for cash and notes payable)Accounts ReceivableService Revenue(Billed clients for services performed)CashRef.Accounts Receivable(Receipt of cash on account)Debit6,2503,2506,2502,125Credit6,2503,2502,8753,3752,1253,2506,2502,1251,1253,2502,8753,3752,1251,125

A T account is a T-shaped account that records business transactions. For example, a cash account…

creste uransactions from the journal of June Swifty, investment broker, are presented as follows. Account Titles and Explanation Date Aug 1 Cash Owner's Capital (Owner's investment of cash in business) 10 Cash Service Revenue (Received cash for services performed) 12 Equipment Cash Notes Payable (Purchased equipment for cash and notes payable) 25 Accounts Receivable Service Revenue Ref. Debit Credit 6,250 3,250 6,250 2,125 6,250 3,250 2,875 3,375 2,125

creste uransactions from the journal of June Swifty, investment broker, are presented as follows. Account Titles and Explanation Date Aug 1 Cash Owner's Capital (Owner's investment of cash in business) 10 Cash Service Revenue (Received cash for services performed) 12 Equipment Cash Notes Payable (Purchased equipment for cash and notes payable) 25 Accounts Receivable Service Revenue Ref. Debit Credit 6,250 3,250 6,250 2,125 6,250 3,250 2,875 3,375 2,125

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

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

See similar textbooks

Similar questions

In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased
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
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?
Preparing a Statement of Cash Flows-Direct Method The controller of Newstrom Software Inc. provides the following information as the basis for a statement of cash flows: Required: 1. Calculate the net cash provided (used) by operating activities. 2. Calculate the net cash provided (used) by investing activities. 3. Calculate the net cash provided (used) by financing activities.
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. borrowed from the bank for business loan B. declared dividends, to be paid next year C. purchased treasury stock D. purchased a two-year insurance policy E. purchased plant assets
Brief 1-28 Statement of Cash Flows Listed are items that would on a Statement of cash flows. Cash received from customers Cash paid for dividends Cash received from a bank loan Cash paid to suppliers Cash paid to purchase Required: Indicate in which part of the statement of cash flows each of the items would appear: operating activities (O), investing activities (I), or financing activities (F).
Which of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipment
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
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. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750