Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactic a. Opened a business bank account with a deposit of $39,000 from personal funds. b. Purchased office supplies on account, $2,320. c. Received cash from fees earned for managing rental property, $6,600. d. Paid rent on office and equipment for the month, $2,850. e. Paid creditors on account, $1,060. f. Billed customers for fees earned for managing rental property, $5,280. g. Paid automobile expenses (including rental charges) for the month, $630, and miscellaneous expenses, $320. h. Paid office salaries, $2,010. i. Determined that the cost of supplies on hand was $1,370; therefore, the cost of supplies used was $950. j. Withdrew cash for personal use, $1,900. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactic a. Opened a business bank account with a deposit of $39,000 from personal funds. b. Purchased office supplies on account, $2,320. c. Received cash from fees earned for managing rental property, $6,600. d. Paid rent on office and equipment for the month, $2,850. e. Paid creditors on account, $1,060. f. Billed customers for fees earned for managing rental property, $5,280. g. Paid automobile expenses (including rental charges) for the month, $630, and miscellaneous expenses, $320. h. Paid office salaries, $2,010. i. Determined that the cost of supplies on hand was $1,370; therefore, the cost of supplies used was $950. j. Withdrew cash for personal use, $1,900. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

Name: 2. Owner's equity is the right of owners to the assets of the busines
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Description: 2. Owner's equity is the right of owners to the assets of the business. These rights are ..by owner's investments and revenues and .by owner's withdrawals and expenses.3. Determine the net income for June.4. June's transactions (a-j) increased or de

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 1.26E: Accounting concepts Match each of the following statements with the appropriate accounting concept....

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Accounting concepts Match each of the following statements with the appropriate accounting concept. Sonic concepts may he used more than once, while others may not be used at all. Use the notat ions shown to indicate the appropriate accounting concept. Statements 1. Assume that a business will continue forever. 2. Material litigation involving the corporation is described in a note. 3. Monthly utilities costs are reported as expenses along with the monthly revenues. 4. Personal transactions of owners are kept separate from the business. 5. This concept supports relying on an independent actuary (statistician), rather than the chief operating officer of the coq)ration, to estimate a pension liability. 6. Changes in the use of accounting methods from one period to the next are described in the notes to the financial statements. 7. Land worth $800,000 is reported at its original purchase price of $220,000. 8. This concept justifies recording only transactions that are expressed in dollars. 9. If this concept was ignored, the confidence of users in the financial statements could not be maintained. 10. The changes in financial condition are reported at the end of the month.
2. Owner's equity is the right of owners to the assets of the business. These rights are (decreased or increased) by owners investments and revenues and (decreased, or increased) by owners withdrawales and expenses. 3. Determine the net income for June. 4. Determine the owner's equity on June 30.
2nd - Which of the following is a group of accounts that shows the rights of the owner or partners of the business on the assets of the business ? a) resources B) Past Years Profits NS) Equity Resources D) Snow Reserves TO) Long Term Liabilities
1.Expenses represent a reduction in ___. A.assets B.revenue C.liability D.equity 2.You are presented a financial statement and from it you can tell what the business owed looking at a financial statement. By studying the information on the statement, you can tell what the business owns and what it owes as of a certain date. You are looking at: A.Income Statement B.Assets C.Revenues D.Balance Sheet
"1.What is revenue? 2.What are expenses? 3.How is net income determined? 4.How does net income affect owner’s equity? 5.Describe the effects of each of the following business transactions on assets, liabilities, and owner’s equity. a.Bought equipment on credit. b.Paid salaries to employees. c.Sold services for cash. d.Paid cash to a creditor. e.Bought furniture for cash. f.Sold services on credit.
A. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?
Based on the worksheet provided, what is the Owner's Equity at the end of the period? Indicate which is true about transaction 9 in the worksheet provided. a. No cash was exchanged in the transaction b. Incurred an expense of $1,120 c. Used $1,120 of supplies during the period d. All of the above Indicate which is true about transaction 10 in the worksheet provided. The owner invested additional money in the business The owner took money out of the business The owner paid a business expense The cash account increased
Question: I'm given a statement of owner's equity and I need to determine some of the missing amounts? 1. How do I get the drawings amount, if I'm only given the beginning capital, investment in the year, profit/lost for the year, and ending capital? 2. How do I get the beginning capital and the ending capital, when I'm only given the investment of the year, profit/lost for the year, and drawings? Please Explain, Thanks.
Indicate whether each of the following types of transactions will either (a) increase owner’s equity or (b) decrease owner’s equity:1. expenses2. owner’s investments3. owner’s withdrawals4. revenues
Indicate all of the following statements that correctlydescribe net income. Net income:a. Is equal to revenue minus expenses.b. Is equal to revenue minus the sum of expenses anddividends.c. Increases owners’ equity.d. Is reported by a company for a specifi c period of time.
Analyze the transactions of a business organized as proprietorship described below and indicate their effect on the basic accounting equation. Use a plus sign to indicate an increase and minus sign to indicate a decrease in asset, liabilities and owner's equity. Asset = liabilities + owner's equity Received cash for services rendered. Purchased office equipment on credit Paid employees salaries Recieved cash from customer in payment account Paid telephone bill for the month Paid for office equipment purchased in transaction 2. Purchased office supplies on credit Owner withdrew cash for personal expenses. Obtained a loan from the bank. Billed customer's for services rendered.
For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders’ equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders’ equity as (f) a dividend. Account Classifications Accounts Related Transactions 1. _________ Rent expense Cost of rent. 2. __________ Interest revenue Interest earned on savings account. 3. __________ Dividends Cash payments to stockholders. 4. __________ Land Land used for operations. 5. ___________ Accounts payable Amounts owed to suppliers.