Martin's Mail Service purchased equipment for $8,000. Martin paid $1,000 in cash and signed a note for the balance. Martin debited the Equipment account, credited Cash and a. nothing further must be done. b. debited the retained earnings account for $7,000. c. credited another asset account for $1,000. d. credited a liability account for $1,000. 84.

Martin's Mail Service purchased equipment for $8,000. Martin paid $1,000 in cash and signed a note for the balance. Martin debited the Equipment account, credited Cash and a. nothing further must be done. b. debited the retained earnings account for $7,000. c. credited another asset account for $1,000. d. credited a liability account for $1,000. 84.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylors accounting system? When Taylor signs the agreement with the seller When Taylor receives an invoice (a bill) from the setter When Taylor receives the asset from the seller When Taylor pays $2.000 cash to the seller
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Selica Financial purchased supplies for $1,400. It paid $400 in cash and agreed to pay the balance in 30 days. The accounts used to record this transaction would include a debit to an asset account for $1,400 and a credit to a liability account for $1,000. Which of the following would be the correct way to complete the recording of the transaction? O Debit the Drawings account for $400. O Credit an asset account for $400. O Credit another liability account for $400. O Credit the Capital account for $400 4
The following transactions were taken from the books of ABC Company. (1) The owner invested P50,000. (2) Purchased Equipment on account, P5,000. (3) Bought Supplies, P5,000 cash. (4) The owner withdrew P1,000 for personal use. (5) The owner made an additional investment of P10,000 cash. Determine total liabilities.
A company purchased equipment for $ 2,000 cash. The vendor stated that the equipment was worth $ 2,400. At what amount should the equipment be recorded?
You are required to open the asset and liability and capital accounts and record the following transactions for June 20X8 in the records of P Bernard. 20X8June 1 Started business with £12,000 in cash. 2 Paid £11,700 of the opening cash into a bank account for the business. 5 Bought office furniture on credit from Dream Ltd for £1,900. 8 Bought a van paying by cheque £5,250. 12 Bought equipment from Pearce & Sons on credit £2,300. 18 Returned faulty office furniture costing £120 to Dream Ltd. 25 Sold some of the equipment for £200 cash. 26 Paid amount owing to Dream Ltd £1,780 by cheque. 28 Took £130 out of the bank and added to cash. 30 F Brown lent us £4,000 – giving us the money by cheque.
You are required to open the asset and liability and capital accounts and record the following transactions for June 20X8 in the records of P Bernard. 20X8June == == == == == == == == == 1 Started business with £12,000 in cash.2 Paid £11,700 of the opening cash into a bank account for the business.5 Bought office furniture on credit from Dream Ltd for £1,900.8 Bought a van paying by cheque £5,250.12 Bought equipment from Pearce & Sons on credit £2,300.18 Returned faulty office furniture costing £120 to Dream Ltd.25 Sold some of the equipment for £200 cash.26 Paid amount owing to Dream Ltd £1,780 by cheque.28 Took £130 out of the bank and added to cash.30 F Brown lent us £4,000 – giving us the money by cheque.
Volcano Inc. Received 1,000 cash in advance for work to be performed. How will this transaction affect the accounts?
Mr. Steve Persian hired Elizabeth to prepare the Statement of Financial Position of his business. To prepare the statement, Elizabeth identified the following assets and liabilities of Mr. Persian: a. Cash deposited in YKY Bank amounting to P100, 000 b. He has uncollected sales from customers amounting to P50, 000 c. The total amount of merchandise left inside the warehouse is P35, 000 d. Steve paid in advance the rent amounting to P15, 000 for one year. e. The machineries and equipment amounted to P150, 000 f. He bought the materials from his suppliers amounting to P30, 000 and promised to pay the said amount one month after the end of the year. g. He paid the contributions of his employees such as SSS, Philhealth and Pag ibig amounting to P6, 500 h. Outstanding balance to Meralco is amounting to P3, 500 i. He acquired a 2 year loan from YKY Bank amounting to P45, 000.
Bramble Industries purchased supplies for $1120. They paid $360 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1120, a credit to a liability account for $760. Which of the following would be the correct way to complete the recording of the transaction? O Credit another liability account for $360. O Credit an asset account for $360. O Debit the retained earnings account for $360. O Credit the retained earnings account for $360. Save for Later W E S D $ T 6 F G B 7 N 8 Attempts: 0 of 1 used EB 9 20 K Submit Answer P
The following transactions occurred during the month of June 2021. 2-Jun Owner contributed $12,000 cash and $18,000 equipment to the business. 8-Jun Purchased motor vehicle for $40,000, paid 20% cash deposit and took out a bank loan for the remaining balance. 13-Jun Received $4,000 cash for service to be provided in July 2021. 17-Jun Provided service to a customer for $12,000, received 20% cash and the remaining balance is on credit. 22-Jun Received $2,000 interest from bank. 26-Jun Paid $4,000 cash for 1-year advertising. 30-Jun Paid $3,000 wages to staff.
The following are the trial balance and the other information related to Bruce Marigold, who operates a construction hauling business. MARIGOLDTRIAL BALANCEDECEMBER 31, 2020 Debit Credit Cash $39,000 Accounts Receivable 48,400 Allowance for Doubtful Accounts $3,400 Supplies 3,040 Prepaid Insurance 1,200 Equipment 30,000 Accumulated Depreciation—Equipment 5,750 Notes Payable 7,200 Owner’s Capital 45,640 Service Revenue 97,790 Rent Expense 7,800 Salaries and Wages Expense 28,400 Utilities Expenses 1,040 Office Expense 900 $159,780 $159,780 1. Fees received in advance from clients $5,100, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $5,000. 3. Equipment is being depreciated at 8% per year. 4. Bad debt expense…