BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

In April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow.

images

  1. a. Rodriguez deposited $70,000 in a bank account in the name of the business.
  2. b. Paid the rent for the month, $2,000, Ck. No. 101 (Rent Expense).
  3. c. Bought supplies on account, $150.
  4. d. Bought a truck for $23,500, paying $2,500 in cash and placing the remainder on account.
  5. e. Bought insurance for the truck for the year, $2,400, Ck. No. 102.
  6. f. Sold services on account, $4,700.
  7. g. Bought office equipment on account from Stern Office Supply, $1,250.
  8. h. Sold services for cash for the first half of the month, $8,250.
  9. i. Received and paid the bill for utilities, $280, Ck. No. 103.
  10. j. Received a bill for gas and oil for the truck, $130.
  11. k. Paid wages to the employees, $2,680, Ck. Nos. 104–106.
  12. l. Sold services for cash for the remainder of the month, $3,500.
  13. m. Rodriguez withdrew cash for personal use, $4,000, Ck. No. 107.

Required

  1. 1. Record the transactions and the balance after each transaction.
  2. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.

1.

To determine

Record the figures in the given transactions for the respective accounts, and balance the figures after recording every transaction.

Explanation

Transaction: The economic events which bring about any changes in the financial items of a business and can be measured in the monetary units is referred to as a transaction.

Accounting equation: Accounting equation is a concept expressed in the form of equation, which creates a relation between resources or assets of a company and claims of resources to creditors and owners. Fundamental accounting equation is expressed as shown below:

Assets = Liabilities + Owners' EquityAssets = Liabilities+{(Owners' Capital

2.

To determine

Sum the balances of accounts to verify whether the balances on left side and on the right side in the accounting equation are equal.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Who is the payee of a note?

College Accounting, Chapters 1-27

(Costs in the Short Run) Identify each of the curves in the following graph:

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

What is inflation and what causes it?

Principles of Microeconomics (MindTap Course List)

Calculate the missing items in the following:

College Accounting (Book Only): A Career Approach

PV OF A CASH FLOW STREAM A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

A dividend payable in cash is known as a stock dividend.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Describe the economic logic behind the theory of purchasing-power parity.

Principles of Macroeconomics (MindTap Course List)