Identify the effects of the following transactions in the table below: Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Contrib. Capital + Earned Capital Revenues - Expenses = Net Income (1) $600 of employee wages are earned but not yet paid = = (2) $3,000 of inventory is purchased on credit = = (3) Sold goods for $1,500 on account = = (4) Record $700 for the cost of inventory sold in (3) above = = (5) Collected $1,000 cash from transaction (3) above
Identify the effects of the following transactions in the table below: Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Contrib. Capital + Earned Capital Revenues - Expenses = Net Income (1) $600 of employee wages are earned but not yet paid = = (2) $3,000 of inventory is purchased on credit = = (3) Sold goods for $1,500 on account = = (4) Record $700 for the cost of inventory sold in (3) above = = (5) Collected $1,000 cash from transaction (3) above
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter1: The Role Of Accounting In Business
Section: Chapter Questions
Problem 1.4.2MBA: Return on assets The following data (in millions) were adapted from recent financial statements of...
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Identify the effects of the following transactions in the table below:
| Balance Sheet | Income Statement | |||||||||||||
| Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contrib. Capital | + | Earned Capital | Revenues | - | Expenses | = | Net Income |
| (1) $600 of employee wages are earned but not yet paid | = | = | ||||||||||||
| (2) $3,000 of inventory is purchased on credit | = | = | ||||||||||||
| (3) Sold goods for $1,500 on account | = | = | ||||||||||||
| (4) Record $700 for the cost of inventory sold in (3) above | = | = | ||||||||||||
| (5) Collected $1,000 cash from transaction (3) above | = | = |
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