Connect Access Card for Fundamental Accounting Principles
Connect Access Card for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259693878
Author: John J Wild
Publisher: McGraw-Hill Education
Question
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Chapter 1, Problem 1SP
To determine

Concept introduction:

Expense: The movement of money or assets from one company to other company in the form of payment for the service or an item is called expense.

Account Receivables: For delivered goods or services, the cash owed by the customer that they need to pay to the business is called account payables. In the balances sheet, the account payables are shown as assets.

Account Payables: For delivered goods or services, the cash owed by the business that they are required to pay to their suppliers is called the account payables. In the balances sheet, the account payables are shown as liabilities.

To determine: The statement showing accounting transaction with new balance after each transaction

Expert Solution & Answer
Check Mark

Explanation of Solution

Date Cash Accounts Receivable Computer Supplies Computer System Office Equipment Accounts Payable S.Rey, Capital With drawls Revenues Expenses
Oct.1 45000     20000 8000   73000      
Balance 45,000     2,0000 8,000   7,3000      
Oct.3     1420     1420        
Balance 45000   1420 20000 8000 1420 73000      
Oct.6   4,800             4800  
Balance 45000 4,800 1420 20000 8000 1420 73000   4800  
Oct.8 -1420         -1420        
Balance 43,580 4,800 1420 20000 8000 0 73000   4800  
Oct.12   1,400             1400  
Balance 43,580 6,200 1,420 20,000 8,000 0 73,000   6,200  
Oct.15 4800 -4800                
Balance 48,380 1,400 1,420 20,000 8,000 0 73,000   6,200  
Oct.17 -805                 805
Balance 47,575 1,400 1,420 20,000 8,000 0 73,000   6,200 805
Oct.20 -1728                 1728
Balance 45,847 1,400 1,420 20,000 8,000 0 73,000   6,200 2,533
Oct.22 1400 -1400                
Balance 47,247 0 1,420 20,000 8,000 0 73,000   6,200 2,533
Oct.28   5208             5208  
Balance 47,247 5,208 1,420 20,000 8,000 0 73,000   11,408 2,533
Oct.31 -875                 875
Balance 46,372 5,208 1,420 20,000 8,000 0 73,000   11,408 3,408
Oct.31 -3600             3600    
Balance 42772 5208+ 1420 20000 8000 0 73000 3600 11408 3408
  1. On Oct.1 S. Rey brings $45,000 of cash, $20,000 computer system and $8,000 of office equipment as capital. The entry on book would be:

Cash A/c $45,000

Computer System $20,000

Office equipment $8,000

To Capital A/c $73,000

  1. On Oct.3 Company purchased Computer supplies of $1420 on credit from Harris office Products.

Computer Supplies A/c $1,420 Dr

Trade Payable A/c $1,420 Cr

  1. On Oct.6 Company billed Easy Leasing $4,800 for services performed installing new web server.

Trade Receivable A/c $4,800 Dr

Revenue from services A/c $4,800 Cr

  1. On Oct.8 Company Paid $1420 to Harris office by cash

Trade Payable A/c $1,420 Dr

Cash A/c $1,420 Cr

  1. On Oct.12 Company billed Easy Leasing $1,420 for services performed installing new web server.

Trade Receivable A/c $1,420 Dr

Revenue from services A/c $1,420 Cr

  1. On Oct.15 Company Receives $4,800 from Easy Leasing by cash

Cash A/c $4,800 Dr

Trade Receivables A/c $4,800 Cr

  1. On Oct.17 Company paid $805 Cash for Repair of Computer

Indirect Expenses (Computer Repair & Maintenance) A/c $ 805 Dr

Cash A/c $ 805 Cr

  1. On Oct.20 Company Paid Cash $ 1,728 for Advertisement

Indirect Expenses (Advertisement) A/c $ 1,728 Dr

Cash A/c $ 1,728 Cr

  1. On Oct.22 Company Receives $ 1,400 from Easy Leasing by Cash

Cash A/c $4,800 Dr

Trade Receivables A/c $4,800 Cr

  1. On Oct.28 Company billed IFM Company $ 5,208 for Services

Trade Receivable A/c $5,208 Dr

Revenue from services A/c $5,208 Cr

  1. On Oct.31 Company Paid Wages $ 875 by cash to Lyn Addie’s

Indirect Expenses (Salary & Wages) A/c $ 875 Dr

Cash A/c $ 875 Cr

  1. On Oct.31 S. Rey withdrew $ 3,600 cash for personal use

Capital A/c $ 3,600 Dr

Cash A/c $ 3,600 Cr

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Chapter 1 Solutions

Connect Access Card for Fundamental Accounting Principles

Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Exercise 1–16 Preparing a statement of owner’s...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 1APSACh. 1 - Prob. 2APSACh. 1 - Prob. 3APSACh. 1 - Prob. 4APSACh. 1 - Prob. 5APSACh. 1 - Prob. 6APSACh. 1 - Prob. 7APSACh. 1 - Prob. 8APSACh. 1 - Prob. 9APSACh. 1 - Prob. 10APSACh. 1 - Prob. 11APSACh. 1 - Problem 1–12AA Identifying risk and...Ch. 1 - Prob. 13APSACh. 1 - Prob. 14APSACh. 1 - Prob. 1BPSBCh. 1 - Prob. 2BPSBCh. 1 - Prob. 3BPSBCh. 1 - Prob. 4BPSBCh. 1 - Prob. 5BPSBCh. 1 - Prob. 6BPSBCh. 1 - Prob. 7BPSBCh. 1 - Prob. 8BPSBCh. 1 - Prob. 9BPSBCh. 1 - Prob. 10BPSBCh. 1 - Prob. 11BPSBCh. 1 - Prob. 12BPSBCh. 1 - Prob. 13BPSBCh. 1 - Prob. 14BPSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 8BTNCh. 1 - Prob. 9BTN
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