E sure to put lhe tudiisaclIOI nUmwer m pdieintiiesIS TIEXT lU Liie diiount m LiIme i accoulitMichael Powers operates GolfGuys, a golf training facility. Analyze and record the follaJuly 1st: Michael Powers invested $8,500 cash into her businessWhich accounts are affected?What is the normal (increase) balance of the affected accounts?How is each account affected?Where will you record the debit and credit?July 7th: Purchased new golf clubs on account for $550 from Golf Unlimited.Which accounts are affected?What is the normal (increase) balance of the affected accounts?How is each account affected?Where will you record the debit and credit?July 14th: Billed, but did not collect, $75 for an hour lesson provided to Mark Jones.Which accounts are affected?What is the normal (increase) balance of the affected accounts?How is each account affected?Where will you record the debit and credit?

Accounting equation of the business says that all assets of the business should be equal to total…

Answered: Michael Powers operates GolfGuys, a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 15EB: Discuss how each of the following transactions will affect assets, liabilities, and stockholders...

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Similar questions

Discuss how each of the following transactions will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. A company purchased $450 worth of office supplies on credit. B. The company parking lot was plowed after a blizzard. A check for $75 was given to the plow truck operator. C. $250 was paid on account. D. A customer paid $350 on account. E. Provided services for a customer, $500. The customer asked to be billed.
Show the effect of the following transactions in the accounting equation. For example: No. Account DR Account CR A = OE + L 1. Furniture Capital + 20 000 + 20 000 0 The owner deposited R 60 000 into business current account as his contribution. Sold goods on credit to F Malila for R 7000 (Cost price R4 500). Business obtained a loan of R30 000 from FCB Bank, the money was transferred to the business current account. Bought stationery on credit, R300. Owner withdrew R400 for personal use.
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $31,000 and has cash on hand of $18,000 contributed by Lanni’s owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Choose one option for following blank: A. real asset. B. financial asset. C. real liability. D. Finanical liability. The bank loan is a Financial liability for Lanni, and a Financial asset for the bank. The cash Lanni receives is a Financial asset . 1. The new financial asset destroyed or created is Lanni's promissory note to repay the loan. Lanni uses the cash from the bank plus $18,000 of its own funds to finance the development of new financial planning software. Lanni transfers financial asset (cash) to the software developers. In return, Lanni receives the completed software package, which is a real asset. Lanni exchanges the real asset (the software) for a Financial asset, which is 1,400 shares of…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. The Schedule is complete, however, I'm struggling with the journal entries. I attached images of the completed schedule to assist with the journal entries. 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). 1 Record the sale…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Cash Equipment Accum. deprec. Equipment Accounts Pay. Notes Pay. David Wallace, Capital Olena Dunn, Capital Danny Lin, Capital Account balance, December 31, 2020 $40,300 $191,000 $102,000 $8,300 $25,000 $44,000…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.)
1-Bank Overdraft is an example of a. Current asset b. Current liability c. Non-current asset d. Non-current liability 2-Mr. Salim Mr Salman are running a restaurant business in Nizwa. Which of the following would be classified as an expense for their restaurant business? a. Salary paid for restaurant employees b. Furniture in the restaurant c. Inventory of tea & coffee d. Cash in hand in the restaurant 3-It is the list of all invoices sent out to Customers each day by your business a. Cash receipt journal b. Cash disbursement journal c. Sales day book d. Purchase day book 4-The allowance or concession granted to a retailer by the wholesaler or dealer is a. Sales b. Profit c. Discount d. Purchase 5-Which of the following is an example of Error of Commission? a. Electricity expense of OMR 150 was entered in OMR 150 in Telephone expenses account b. Purchase of goods of OMR 15000 entered twice in the accounts c. Purchase of goods OMR 15,000 were…
How will IFFA record the May 1 transaction? a. No entry is needed. b. decrease Cash and increase Bank Loan Payable, $12 c. decrease Cash and increase Accounts Payable, $12 d. increase both Cash and Owner's Capital, $12 Enter the letter that corresponds to your choice. (A B C D) How will IFFA record the May 2 transaction? a. increase both Cash and Accounts Payable, $4,000 b. increase both Cash and Bank Loan Payable, $4,000 c. increase both Cash and Owner's Capital, $4,000 d. increase both Cash and Revenue, $4,000 e. increase both Cash and Retained Earnings, $4,000 Enter the letter that corresponds to your choice. (A B C D E) How will IFFA record the May 3 transaction? a. increase both Cash and Accounts Payable, $3,000 b. increase both Cash and Bank Loan Payable, $3,000 c. increase both Cash and Owner's Capital, $3,000 d. increase both Cash and Revenue, $3,000 e. increase both Cash and Retained Earnings, $3,000 Enter the letter that corresponds to your…
How will IFFA record the May 1 transaction? a. No entry is needed. b. decrease Cash and increase Bank Loan Payable, $12 c. decrease Cash and increase Accounts Payable, $12 d. increase both Cash and Owner's Capital, $12 Enter the letter that corresponds to your choice. (A B C D) How will IFFA record the May 2 transaction? a. increase both Cash and Accounts Payable, $4,000 b. increase both Cash and Bank Loan Payable, $4,000 c. increase both Cash and Owner's Capital, $4,000 d. increase both Cash and Revenue, $4,000 e. increase both Cash and Retained Earnings, $4,000 Enter the letter that corresponds to your choice. (A B C D E) How will IFFA record the May 3 transaction? a. increase both Cash and Accounts Payable, $3,000 b. increase both Cash and Bank Loan Payable, $3,000 c. increase both Cash and Owner's Capital, $3,000 d. increase both Cash and Revenue, $3,000 e. increase both Cash and Retained Earnings, $3,000 Enter the letter that corresponds to your choice.…
Which of the following transactions would increase the cash by RO 5000 and increase the revenue by RO 5000? a. Purchased Furniture RO 5000 b. Took Loan of RO 5000 from Bank Nizwa c. Performed service to the customer RO 5000 and the customer paid cash RO 5000 d. Paid RO 5000 for the creditors
Q1. Mr. X has recorded good relations with his partners as an asset in the balance sheet? Is he violating anyaccounting principles? Why or why not support your answers with reasons?Q2. Javlon purchased a furniture for $10000 on credit? In books he passed an entry of Cash A/c debit toFurniture account credit $10000. Do you agree with the journal entry? If not tell the correct entry? Alsopass a rectification entry?Q3. On December 31, Javlon Company, a partnership between Fogg and Shelhon, realized a $66,000 netincome. According to the partnership agreement, the partners split the profits on a 3:2 basis. Determineeach partner’s split and the journal entries you will make to record the split of net income.
Complete the gaps in the columns to show the effects of the followingtransactions: (16)Effects upon:Assets Equity Liabilitiese.g Started a business with N$ 50000 in thebank+50000 +50000 +0a) We pay a creditor N$7000 in cashb) Bought fixtures N$20000 paying by chequec) Bought a vehicle on credit N$27500d) The Proprietor introduces another N$20000into the firme) J Katoma lends the firm N$20000 in cashf) A debtor pays us N$ 5000 by chequeg) We sell goods for N$ 20000 cashh) Paid rent N$5000 by cheque

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