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Name: Prepare accounting equation on the basis of the following :(a) Harsha
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Description: Prepare accounting equation on the basis of the following :(a) Harsha started business with cash $ 2,00,000(b) Purchased goods from Naman for cash $40,000

Business

Accounting

Prepare accounting equation on the basis of the following :(a) Harsha started business with cash $ 2,00,000(b) Purchased goods from Naman for cash $40,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 1CP

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A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500. What is total income for the month?
On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
Show that the accounting equation is satisfied after taking into consideration each of the following transactions in the books of Mr. N 1. Started business with capital 1,00,000 2. Bought furniture 25,000 3. Bought goods for cash 20,000 4. Bought goods from Ram on Credit 5,000 5. Sold goods for cash for 15,000 6. Sold goods to Shyam on credit 8,000 7. Paid cash to Ram 4,000 8. Received cash from Shyam 5,000 9. Paid Cash into Bank 25,000 10. Withdrawn from bank 10,000
Prove that the Accounting Equation is satisfied in all following transactions of Aslam owner of business enterprises? Started business with cash value of Rs. 400,000. Rent paid in advance for a year Rs. 4,000. Purchased merchandising inventory for cash Rs. 70,000 and on account Rs. 30,000 from Mr. Akram. Purchased Marketable securities for cash Rs. 200,000. Cash Sales Rs. 31,000 (cost 21,000). Withdrew inventory for personal purpose by owner of worth Rs. 5,000 Requirement: Use accounting equation to show their effect on his Assets, Liabilities and Capital?
During the year, the Decker Company experienced the following accounting transactions: I. Purchased equipment with cash in the amount of$ I 00,000 2. Purchased supplies on account in the amount of$ I 0,000 3. Collected $21,000 cash from customers 4. Paid a cash dividend of $ 15,000 Using the accounting equation, record each of the transactions using the Transaction Analysis Template:
Give Accounting Equation for the following transactions of Jitesh:– Started business with cash $. 36,000– Paid rent in advance $. 800– Purchased goods for cash $.10,000 and on credit $. 4,000– Sold goods for cash $. 8,000– Rent paid $. 2000 and rent outstanding $. 400– Bought cycle for personal use $. 16,000– Purchased equipment's for cash $. 10,000– Paid to creditor$ $. 1,200– Some business expenses paid $. 1,800– Depreciation on equipment $. 2,000
Activity: Following are the accounting transactions relating to Mr. P’s business. Use the accounting equation to show their effect on his assets, liabilities and capital. Purchased goods from A on credit 5,000 Sold goods for cash 10,000 Paid to A 2,000 Sold goods to B on credit 3,000 Paid into Bank 6,000 Paid to A by cheque 1,000 Received from B a cheque for 2,000
Prepare accounting equation for the following transactions? On April 01, 2016 Anees started business with Rs. 100,000 and other transactions for the month are: Purchase Furniture for Cash Rs. 7,000. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store. Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000. Owner withdrew of worth Rs. 2,000 for personal use. Paid Khalid Retail Store Rs. 500. Received Rs. 10,000 from Khan Brothers. Paid Salaries Expense Rs. 2,000
Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or decrease under the proper element heading. Compute the resulting accounting equation. a. Owner invested $16,500 cash in the business. b. Paid premium for two-year insurance policy, $1,500. c. Purchased a van valued at $35,000 with $5,000 down payment; the balance to be paid over three years. d. Paid the rent for the month, $900. e. Purchased $470 of supplies for cash. f. Cash sales for the month, $8,750. g. Billed credit customers $14,200 for monthly services. h. Paid monthly utility bill, $210. i. Owner withdrew $2,200 for personal use. j. Received payments of $3,300 from credit customers.
ABC is a wholesale trader; the following transactions are recorded in Accounting Equation. i. Commence business with cash Cad. 200,000 and Land Cad. 50,000. ii. Bought merchandising for cash Cad. 80,000. iii. Cash sales of worth Cad. 25,000. iv. Bought goods on credit from Salman of worth Cad. 50,000. v. Sales on account to Ali Raza Cad. 12,000. vi. Purchase furniture of the value of Cad. 5,000 by cash. vii. Received cash from Ali Raza of Cad. 10,000. viii. Return defective furniture of worth Rs. 1,500. xi. Paid wages Rs. 1,000, Rent 2,000 and Electricity Bill Payable Rs. 1,500.