Shiny Kar Company had the following transactions. For each transaction, show the effect on the accounting equation by putting the amount and direction ("+" for an increase,"-" for a decrease, or "NC" for no change) in each box of the table below. If the effect is no change, then enter a "0" in amount box. Enter all dollar amounts as positivenumbers.Owner's EquityTransactionAssetsLiabilitiesa. Shiny Kar withdrew $500 cash for food.Shiny Kar Company sold 2 cars for a total ofb.$55,000 on account.Shiny Kar received a $35,000 payment for a carC.$4previously sold on account.d. Shiny Kar paid $450 for advertising.Shiny Kar purchased $150 of cleaning supplies one.account.

Following table shows the effect of given transactions:

Answered: Shiny Kar Company had the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 9PA: Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following...

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Which of the following statements is true? a. Every transaction is recorded as an increase and/or decrease in only one account. b. One side of the equation does not need to equal the other side of the equation. c. Double-entry accounting is demonstrated by the fact that each transaction must be recorded in at least two accounts. d. When a business earns revenue, owners equity decreases.
The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation.
Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following transactions on each part of the accounting equation, . For example, for payment of an accounts payable balance, . A. sale of merchandise to customer on account B. payment on note payable C. purchase of equipment for cash D. collection of accounts receivable E. purchase of supplies on account
During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…
Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry. Assets Liabilities Beginning of Year: $27,000 $16,000 End of Year: $61,000 $25,000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? 3) If the company issues common stock of $5,300 and pay dividends of $44,200, how much is net income (loss)? 4) If net income is $3,800 and dividends are $6,600, how much is common stock? 5) If the company issues common stock of $16,500 and net income is $18,700, how much is dividends? 6) If the company issues common stock of $42,900 and pay dividends of $3,100, how much is net income (loss)?
Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction for transaction details. Determine the new balance for each component of the accounting equation (assets, liabilities, owner’s equity) resulting from the transaction. (You will not need to enter the amount of each transaction, only the balance after the transaction.) If an amount box does not require an entry, leave it blank. Transaction Assets = Liabilities + Owner's Equity Beginning $0 $0 $0 1. Investment in the business The owner of the company invested $16,810 cash into the business 2. Borrow cash The company borrows $7,770 from the local bank 3. Purchase equipment The company pays cash for a piece of equipment. The list price was $9,100, but after negotiation the final was $8,700 4. Revenues earned During the year, Thomas Company earned revenues totaling $ 296,600. The cash has been…
Bluer Company has a current ratio of 3.00. Which of the following events would cause its current ratio to increase? Select one: a. Collection of an account receivable b. Payment of an account payable c. Purchase of office supplies on account d. Purchase of equipment on account e. None of the above
1. Suppose a business receives a bill for services rendered from one of itssuppliers. The business will pay the supplier next month. When the businessreceives the bill from its supplier, explain how this affect the accounting equation in terms of increasing or decreasing assets, liabilities, or owner’s equity? 2. Suppose equipment is sold for cash in an amount equal to the cost of theequipment recorded on the books. How does this sale affect the accountingequation in term of increasing or decreasing assets, liabilities or owner’s equity?
The Mendholm Company entered into the following transactions: Performed services on account, $21,500. Collected $9,500 from client related to services performed in Item a. Paid $500 dividend to stockholders. Paid salaries of $4,000 for the current month. Required: Show the effect of each transaction using the following model. If an amount box does not require an entry, leave the cells blank or enter zero ("0"). Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (i.e. Asset, Liability), enter "0" since the net effect on the item is zero.
Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Assets Liabilities Beginning of Year: $25,000 $15,000 End of Year: $63,000 $26,000 1) What is the equity at the beginning of the year? Beginning Equity 2) What is the equity at the end of the year? Ending Equity 3) If the owner contributes $9,600 and the owner withdraws $37,300, how much is net income (loss)? Net Income (Loss) 4) If net income is $3,900 and owner withdrawals are $6,200, how much did the owner contribute (owner, capital)? Owner, Capital 5) If the owner contributes $16,000 and net income is $19,300, how much did the owner withdraw (owner, withdrawals)? Owner, Withdrawals 6) If the owner contributes $43,800 and the owner withdraws $4,600, how much is net income (loss)?
Indicate if the following transaction from Torte Baking Company increases or decreases assets, liabilities, equity, revenue, expense, and net income. The pattern of the + and - must adhere to the balance sheet equation. Show the impact of revenue and expense on both net income and equity. If there is a + and - within one category (e.g., assets for transaction 2), then list the accounts that go up and down. Transaction (25) Record Salary Expense that will be paid later Assets ["", "", ""] Liabilities ["", "", ""] Equity ["", "", ""] Revenue ["", "", ""] Expense ["", "", ""] Net Income ["", "", ""]
Choose the correct answer Which of the following accounts is increased by a credit?A. CashB. Accounts receivableC. Accounts payableD. Owner’s drawings At the beginning of the period, the owner’s capital account of a business has a balance of ₱220,000. During the period, the total debits and credits to that account were ₱60,000 and ₱70,000, respectively. How much is the ending balance of the owner’s capital account? A. 230,000B. 210,000C. 350,000D. 90,000

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