Using the information provided, analyze the effects of Lawlor Lawn Services transactions on the accounting equation. (Click the icon to view the transactions.) analyze the events chronologically, one transaction at a time beginning with the May 1 transaction. For each transaction that follows the May 1st transaction, calculate the balance. heach account after analyzing its effect on the accounting equation. (Complete only the necessary nswer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. abbreviation used: Contr. Contributed; Liab. Liabilities.) ASSETS + Accounts + Equipment = Receivable Cash + LIAB. Accounts Payable EQUITY + Lawlor, Lawlor, + Service Capital Withdrawals Revenue + Gas Expense More info May 1 May 3 May 5 May 17 May 28 Received $2,000 and gave capital to Edmond Lawlor. Purchased a mower on account, $2,000. Performed lawn services for client on account, $1,000. Paid $70 cash for gas used in mower. Edmond Lawlor withdrew cash of $700. - X

Using the information provided, analyze the effects of Lawlor Lawn Services transactions on the accounting equation. (Click the icon to view the transactions.) analyze the events chronologically, one transaction at a time beginning with the May 1 transaction. For each transaction that follows the May 1st transaction, calculate the balance. heach account after analyzing its effect on the accounting equation. (Complete only the necessary nswer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. abbreviation used: Contr. Contributed; Liab. Liabilities.) ASSETS + Accounts + Equipment = Receivable Cash + LIAB. Accounts Payable EQUITY + Lawlor, Lawlor, + Service Capital Withdrawals Revenue + Gas Expense More info May 1 May 3 May 5 May 17 May 28 Received $2,000 and gave capital to Edmond Lawlor. Purchased a mower on account, $2,000. Performed lawn services for client on account, $1,000. Paid $70 cash for gas used in mower. Edmond Lawlor withdrew cash of $700. - X

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.1KTQ: Read each definition below and write the number of the definition in the blank beside the...

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Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Event External event Internal event Transaction Source document Account Chart of accounts General ledger Debit Credit Double-entry system Journal Posting Journalizing General journal Trial balance A numerical list of all accounts used by a company. A list of each account and its balance; used to prove equality of debits and credits. A happening of consequence to an entity. An entry on the right side of an account. An event occurring entirely within an entity. A piece of paper that is used as evidence to record a transaction. The act of recording journal entries. An entry on the left side of an account. The process of transferring amounts from a journal to the ledger accounts. An event involving interaction between an entity and its environment. A record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders equity. A book, a file, a hard drive, or another device containing all of the accounts. A chronological record of transactions. Any event that is recognized in a set of financial statements. The journal used in place of a specialized journal. A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, for example); the second digit is to indicate the subclassification (11 for current assets, for example); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Merchandise Inventory, etc.).
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 9. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, and so on); the second digit is to indicate the subclassification (11 for current assets, and so on); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Merchandise Inventory, 115 for Store Supplies, and so on).
Piedmont Inc. has the following transactions for its first month of business: A. What are the individual account balances, and the total balance, in the accounts payable subsidiary ledger? B. What is the balance in the Accounts Payable general ledger account?
State whether the balance in each of the following accounts increases with a debit or a credit. A. Office Supplies B. Retained Earnings C. Salaries Expense D. Accounts Receivable E. Service Revenue
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…
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following(partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); WagesExpense (601), and Landscaping Expense (696).
Record each of the following transactions or recognitions in T-account format, label the accounts used, and indicate for each account whether it is an asset (A), liability (L), revenue (R), expense (E), or owners’ equity (OE) account. Make only those entries required to record an event or transaction; do not include balances that may exist in the account as a result of earlier entries. Make sure that the sum of your debit entries equals the sum of your credit entries. a. Company Q sells $4,000 of merchandise to a customer; this merchandise is valued in inventory at $3,200. b. Company Q purchases, on credit, merchandise normally valued at $8,000; because of the size of the order, Q’s vendor provides a 5 percent quantity discount. c. Company Q pays $600 of accrued interest payable on its bank loan. d. Company Q receives $300 due in rent for this month from a tenant who rents an office suite in Q’s headquarters building. e. Company Q borrows an additional $10,000 from the bank.…
Shannon O'Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the accounts shown in the following accounting equation. Use the form in your Working Papers to complete this problem. For each transaction, complete the following. Transaction 1 is given as an example. a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns using a plus sign( + ) if the account increases or a minus sign(-) if the account decreases. c. F or transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Ca lculate a new balance for each transaction in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. Transactions: 1. Paid cash for rent, $400.00$400.00. 2. Owner withdrew equity in the form of cash, $150.00$150.00. 3. Received cash from sales,…
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $89,000 in cash along with equipment having a $49,000 value. On May 21, Elegant Lawns purchases office supplies on credit for $660. On May 25, Elegant Lawns receives $9,700 cash for performing landscaping services. On May 30, Elegant Lawns receives $2,900 cash in advance of providing landscaping services to a customer.
Listed below are all the steps in the accounting cycle.(a) Record and post adjusting entries.(b) Post the transaction to the T-account in the general ledger.(c) Record the transaction.(d) Prepare financial statements (income statement, statement of stockholders’ equity, balance sheet, and statement of cash flows).(e) Record and post closing entries.(f) Prepare a trial balance.(g) Analyze the impact of the transaction on the accounting equation.(h) Assess whether the transaction results in a debit or a credit to the account balance.(i) Use source documents to identify accounts affected by external transactions.Required: List the steps in proper order.
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in the journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value in exchange for common stock. On May 21, Elegant Lawns purchases office supplies on credit for $500. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer