For each of the items below, indicate whether the transaction increased equity, decreased equity, or has no effect on equity.v Paid a vendor invoice.A. No effectSold stock to the public.В.v Paid rent.IncreaseC.Decreasev Received a check from a customer to pay their account.Sold merchandise on account.v Sold merchandise for cash.Bought inventory on account.Recorded a decline in inventory value.Sold equipment for more than its book value.v Recorded compensated absences.

The question covered the concept of an Equity Account.

For each of the items below, indicate whether the transaction increased equity, decreased equity, or has no effect on equity. v Paid a vendor invoice. v Sold stock to the public. v Paid rent. A. No effect B. Increase C. Decrease Received a check from a customer to pay their account. Sold merchandise on account. Sold merchandise for cash. Bought inventory on account. v Recorded a decline in inventory value. v Sold equipment for more than its book value. Recorded compensated absences.

For each of the items below, indicate whether the transaction increased equity, decreased equity, or has no effect on equity. v Paid a vendor invoice. v Sold stock to the public. v Paid rent. A. No effect B. Increase C. Decrease Received a check from a customer to pay their account. Sold merchandise on account. Sold merchandise for cash. Bought inventory on account. v Recorded a decline in inventory value. v Sold equipment for more than its book value. Recorded compensated absences.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 16EB: For each of the following items, indicate whether a debit or a credit applies. A. increase in...

See similar textbooks

Similar questions

Effects of transactions on stockholders’ equity For Target Corporation (TGT), indicate whether the following transactions would (1) increase, (2) decrease, or (3) have no effect on stockholders’ equity. a. Borrowed money front the bank. b. Paid creditors. c. Made cash sales to customers. d. Purchased store equipment. e. Paid dividends. f. Paid store rent. g. Paid interest expense. h. Sold store equipment at a gain. i. Received interest revenue. j. Paid taxes.
For each of the following items, indicate whether a debit or a credit applies. A. increase in retained earnings B. decrease in prepaid rent C. increase in dividends D. decrease in salaries payable E. increase in accounts receivable F. decrease in common stock G. decrease in prepaid insurance H. decrease in advertising expense I. decrease in unearned service fees J. increase in office equipment
Sales made to Ahmed on credit should be debited to? Select one: a. Cash A/C b. Account Receivable A/C c. Sales A/C d. Account Payable A/C hen the owner withdraws money from the business for personal use -Which of the following has correct effect on accounting equation? Select one: a. Expense increase and Cash decrease b. Cash increase and Capital increase c. Cash decrease and Capital decrease d. Income increase and Cash decrease
Blecker Corp. made cash sales to customers. What effect does this transaction have on theaccounting equation?a. Liabilities increase and stockholders’ equity increases.b. There is no effect on the accounting equation as one asset account increases whileanother asset account decreases.c. Assets increase and liabilities increase.d. Assets increase and stockholders’ equity increases.
A company sells magazines and collects subscription fees prior to the publication and distribution of the magazine. Which of the following correctly describes the impact on the financial statements when cash is received in advance from customers? Group of answer choices A)Current assets increase and gross profit increases. B)Current liabilities increase and gross profit is not affected. C)Current assets increase and stockholders' equity increases. D)Current liabilities aren't affected and stockholders' equity isn't affected.
What is the primary purpose of the Statement of Affairs ? a. To determine how much is owed by the customers b. To determine the amount for the owners equity c. To determine how is left in the bank account d. To determine if there was a gain or loss on disposal The term Margin is determined by which of the following operations? a. Adding all the incomes b. Dividing gross profit by sales c. Subtracting expenses from sales d. Multiplying capital by a decimal The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800…
Super Corp. has an acid test ratio 1.5 to 1.0 which of the following will causethis ratio to deteriorate?a. Payment of cash dividends previously declared.b. Borrowing short term loan from a bank.c. Sale on inventory on account.fd. Sale of equipment at a loss.
Which of the following accounts decreases with a debit? A) notes payable B) cash C) accounts receivable D) rent expense For expenses, the category of account and its normal balance is ______ A) assets and a debit balance B) equity, and a credit balance C) equity, and a debit balance D) assets, and a credit balance Ranger pool company received cash of $40,000 and issued common stock which of the following accounts will be credited? A) cash B) accounts receivable C) common stock D) accounts payable
 Show the effect on the of the following transactions of ABC Traders on the Accounting Equation. Use ‘+’ to denote an increase, ‘- ‘ to denote a decrease and ‘0’ no change to the elements of the equation . Assume the Bank balance is favourable all the times. Transactions1.1 Received rent from a tenant, cash, R 5 000.1.2 Received an account from G-Force Motors for motor vehicle repairs, R 10 500.1.3 Issued a cheque to Techno Traders for equipment purchased, R 45 000.1.4 Issued a receipt to the proprietor who increased her capital contribution by R 250 000.1.5 Received a R14 800 from a debtor settled his account.1.6 Purchased a cash register machine on credit, R28 000.1.7 Received R3 000 interest on fixed deposit.1.8 Services rendered to customers on credit, R5 500.1.9 Received a cheque for R1 700 from a debtor in full settlem
Listed below are components of several transactions. Indicate whether a debit (dr) or credit (cr) would be required to record the component of the transaction. Question 3 options: Increase in Inventory. Decrease in Equipment. Decrease in Notes Payable. Increase in Accounts Payable. Increase in Common Stock. Increase in Cash. 1. Debit 2. Credit
The following is list of accounts each represented by letter(s). A Accounts Payable AA Losses due to fire B Accounts Receivable BB Merchandise Inventory E Accumulated Depreciation—Equip EE Notes Payable F Allowance for Doubtful Accounts FF Payroll Tax Expense G Bad Debt Expense GG Premium on Bonds Payable H Bonds Payable HH Prepaid Insurance I Building II Prepaid Rent J Capital Lease Payable JJ Rent Expense K Cash KK Rent Revenue L Cost of Goods Sold LL Retained Earnings M Depreciation Expense MM Salaries and Wages Expense N Discount on Bonds Payable NN Salaries and Wages Payable O Dividends OO Sales Commission Expense P Equipment PP Sales Commission Payable Q Fed Income Tax Payable QQ Sales Returns R Fed Unemployment Tax Payable RR Sales Revenues S FICA Taxes Payable SS Sales Taxes Payable T Income Summary TT Service Revenue U Insurance Expense UU State Income Tax Payable V Interest Expense VV State Unemployment Tax Payable W Interest…
The following is list of accounts each represented by letter(s). A Accounts Payable AA Losses due to fire B Accounts Receivable BB Merchandise Inventory E Accumulated Depreciation—Equip EE Notes Payable F Allowance for Doubtful Accounts FF Payroll Tax Expense G Bad Debt Expense GG Premium on Bonds Payable H Bonds Payable HH Prepaid Insurance I Building II Prepaid Rent J Capital Lease Payable JJ Rent Expense K Cash KK Rent Revenue L Cost of Goods Sold LL Retained Earnings M Depreciation Expense MM Salaries and Wages Expense N Discount on Bonds Payable NN Salaries and Wages Payable O Dividends OO Sales Commission Expense P Equipment PP Sales Commission Payable Q Fed Income Tax Payable QQ Sales Returns R Fed Unemployment Tax Payable RR Sales Revenues S FICA Taxes Payable SS Sales Taxes Payable T Income Summary TT Service Revenue U Insurance Expense UU State Income Tax Payable V Interest Expense VV State Unemployment Tax Payable W Interest…