Please help me to answer this 2 questions.thank you Which of the following transactions doesnot affect the balance sheet totals?Withdrawal of P75, 000 for personal use bythe firm's ownerIssuing a P250, 000 promissory note toapply on accountInvesting a P30, 000 worth of equipmentinto the business V Healing and Jin installed a P12, 000healing system for one of its clients. Theclient pald 1/3 down and promised to paythe balance in 60 days. This transaction hadthe following effects on V's accountingequation: *Increase P12, 000; no change; increase P12.000increase P12, 000, increase P8, 000;increase P4, 000Decrease P4, 000; increase P8, 000:decrease P12, 000Increase P4, 00D; no change, increase P4,00

Balance sheet total does not change when there is a change in either side of the balance sheet. Like…

Answered: Which of the following transactions…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 4DQ

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Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
Can you recheck the transaction on Feb. 12? It was said that the owner received P50,000 from customers, why did you deduct the P50,000 in accounts receivable? The cash came from the customers and not from the Nestle Corporation, does it? Should that P50,000 be added on the Capital? A revenue earned?
Which of the following statements is TRUE? If a company provides service and bills its client $20,000, the journal entry to record this transaction will cause Total Assets to increase. If a company collects a cash deposit of $20,000 for services not yet performed, the journal entry to record this transaction will cause Net Income to increase. If a company pays $20,000 for inventory previously purchased on account, the journal entry to record this payment will cause Total Liabilities to increase. None of the above.
Crispin Santos started a retail merchandise business on January 1, 2021. During the year ended December 31, 2021, the entity paid trade creditors P2,000,000 and suffered a net loss of P350,000. The ledger account preclosing balances on December 31, 2021 included the following:· Accounts receivable- P600,000· Accounts payable- P750,000· Capital (total investment in cash)- P2,000,000· Expenses (paid in cash)- P100,000· Merchandise (unadjusted debit balance)- P700,000There were no withdrawals. All sales and purchases were on credit. The merchandise account is debited for purchases and credited for sales. What is the amount of purchases for the year?
Crispin Santos started a retail merchandise business on January 1, 2021. During the year ended December 31, 2021, the entity paid trade creditors P2,000,000 and suffered a net loss of P350,000. The ledger account preclosing balances on December 31, 2021 included the following:· Accounts receivable- P600,000· Accounts payable- P750,000· Capital (total investment in cash)- P2,000,000· Expenses (paid in cash)- P100,000· Merchandise (unadjusted debit balance)- P700,000There were no withdrawals. All sales and purchases were on credit. The merchandise account is debited for purchases and credited for sales. What is the amount of purchases for the year? A. 1,950,000 B. 2,800,000 C. 2,750,000 D. 2,000,000
Assume that the total assets, liabilities, Equity of the firm are OMR 40000, OMR 10000 and OMR 30000 respectively.The company sold OMR 3000 furniture for its customer and received notes receivables for OMR 4500. What is the effect of the above transaction on different elements of financial position of the company? a. Assets of the company increase by OMR 1500 and capital of the company increase by OMR 1500 b. Assets of the company decrease by OMR 3000 and capital of the company decrease by OMR 3000 c. Assets of the company increase by OMR 4500 and capital of the company increase by OMR 4500 d. None of the given options
5. Suppose Mr. Chen lends P500,000 cash to the entity. At the same, the entity uses part of the money to repay the amount owed to a creditor and holds the remaining amount of P400,000 in the bank account. Which of the following effects on the accounting equation is correct?Select one: a.Assets increase by P500,000 and liabilities increase by P500,000 b.Assets decrease by P100,000 and liabilities increase by P500,000 c.Assets increase by P400,000 and liabilities increase by P400,000 d.Assets increase by P400,000 and liabilities decrease by P500,000
Entity A enters into the following transactions. You are required to show the impact of the transactions below on the accounting equation.1. In an attempt to assist the business, the owner of Entity A deposited R100 000 into the entity’s bank account. A quarter of the amount is payable to the owner and the rest is not.2. A client of Entity A who currently owes the company R23 000, purchased bricks to the value of R45 000 and paid R35 000 to reduce his outstanding balance. Entity A purchased the bricks for R18 000.3. Entity A purchased 1 000 bags of cement from K Ltd on credit. K Ltd normally sells a bag for R45. Entity A received a 10% discount for the 1 000 bags.4. Entity A returned 150 bags of cement, as they were defective. On the same day, the outstanding balance was settled through an online payment. This transaction did not affect the discount offered to Entity A.
5. Corp. maintains its accounting records on the cash basis but restates its financial statements to the accrual method of accounting. Lea had P60,000 in cash-basis pretax income for the current year. The following balances at January 1 and December 31 of the current year are available: 12/31 1/1 Accounts receivable P40,000 P20,000 Accounts payable 15,000 30,000 Under the accrual method, what amount of income before taxes should Lea report in its current year income statement? Group of answer choices P95,000 P65,000 P55,000 P25,000

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Which of the following transactions does not affect the balance sheet totals? Withdrawal of P75, 000 for personal use by the firm's owner Issuing a P250, 000 promissory note to apply on account Investing a P30, 000 worth of equipment