COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
16th Edition
ISBN: 9781264624256
Author: Haddock
Publisher: MCG
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Chapter 2, Problem 1.4SRE
To determine
Identify the correct option by analyzing the business transaction by indicating their effects on
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Students have asked these similar questions
The Owner's Capital has a beginning balance of P626,000. The owner gave P130,000
additional contribution during the year. Based on the Statement of Comprehensive Income.
net income for the year was P355,000. How much money did the owner withdrew from the
business?
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Accounts Receivable
Accrued Expenses
Accumulated Depreciation
Cash
Inventory
Investments
Your answer
Mortgage Payable
57,000
65,000 Notes Payable
37,000 Notes Receivable
Your answer
110,000 Owner, Capital
91,000 Prepaid Expenses
89,000 Property, Plant and Equipment
143,000 Unearned Revenue
400,000
130,000
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An entity began October with office supplies of P16,500. During the month, the entity
purchased supplies of P27,100. On October 30, supplies on hand totaled P21,200. How
much should be recorded as supplies expense for the month?
Write TRUE f the analysis for each transaction is correct and FALSE if it is not.
The owner purchased furniture for Php5,500 on account
Analysis:
Increase in Asset: Furniture and Fixture Php 5,500
Decrease in Asset: Accounts Receivable Php 5,500
The business bought a lot for Php50,000 paying cash of Php20,000 with the balance covered by a promissory note
Analysis:
Increase in Asset: Land Php50,000
Decrease in Asset: Cash Php20,000
Increase in Liability: Notes Payable Php30,000
1. Hannah Maganda has total assets of P25000 and equity of P32000. How much is her liabilities?
2. The total income of basit machine shop is P110000 and total expense of P30000 how much is basit Machine shop profit(or loss)?
3. The initial investment of the owner in his business is p75000. At the end of each year the total assets of the business amounted to p100000 ,which consist of p50000 and p50000 equipment.The equipment has an unpaid balance if P20000 the only liability of the business. How much is the owners equity at the end of each of the year?
Chapter 2 Solutions
COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
Ch. 2 - What is a business transaction?Ch. 2 - Prob. 1.2SRQCh. 2 - Prob. 1.3SRQCh. 2 - Prob. 1.4SRECh. 2 - Prob. 1.5SRECh. 2 - Prob. 1.6SRACh. 2 - Prob. 2.1SRQCh. 2 - Prob. 2.2SRQCh. 2 - What information is included in the financial...Ch. 2 - Prob. 2.4SRE
Ch. 2 - Prob. 2.5SRECh. 2 - Prob. 2.6SRACh. 2 - Prob. 1CSRCh. 2 - Prob. 2CSRCh. 2 - Prob. 3CSRCh. 2 - Prob. 4CSRCh. 2 - Prob. 5CSRCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the effects of each of the following...Ch. 2 - What is the fundamental accounting equation?Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Computing net income or net loss. The Computer...Ch. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Preparing a statement of owners equity and a...Ch. 2 - Analyzing the effects of transactions on the...Ch. 2 - Prob. 2PACh. 2 - Prob. 3PACh. 2 - The following equation shows the transactions of...Ch. 2 - Prob. 1PBCh. 2 - Prob. 2PBCh. 2 - Prob. 3PBCh. 2 - Prob. 4PBCh. 2 - The following account balances are for William...Ch. 2 - Richard Harris opened a gym and fitness studio...Ch. 2 - Prob. 1MFCh. 2 - Prob. 2MFCh. 2 - Prob. 3MFCh. 2 - How does an accounting system help managers...Ch. 2 - Prob. 1ED
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- Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.arrow_forwardWhen a company buys equipment for $161,000 and pays for one half in cash and the other one half is financed by a note payable, which of the following are the effects on the accounting equation? a. Total assets increase $161,000 b. Total liabilities increase $161,000 c. Total liabilities decrease $80,500 d. Total assets increase $80,500arrow_forwardPrepare the journal entry for the following transactions: (1) Geysler Company sold some old equipment that initially cost $30,000 and had $25,000 of accumulated depreciation and received cash in the amount of $2,000. (2) Assume the same facts except Geysler received $8,000. 1) general journal. desscrcription. debit. credit cash. ? ? accum. deprec. ? ? ? ? ? ? ? ? 2) general journal. desscrcription. debit. credit cash. ? ? ? ? ? ? ? ? equipment. ? ?arrow_forward
- When a company buys equipment for $156,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation? Multiple Choice Total assets increase $104,000. Total liabilities increase $156,000. Total liabilities decrease $52,000. Total assets increase $156,000.arrow_forwardDuring a recent year, Nicole’s Getaway Spa (NGS) reported net income of $2,300. The companyreported the following activities:a. Increase in inventory of $400.b. Depreciation of $3,000.c. Increase of $2,170 in prepaid expenses.d. Payments of $4,600 on long-term debt.e. Purchased new spa equipment for $7,582.f. Payments on accounts payable exceeded purchases by $320.g. Collections on accounts receivable exceeded credit sales by $859.h. Issued $10,000 of common stock.Required:Based on this information, prepare a statement of cash flows for the year ended December 31 usingthe indirect method. Assume the cash balance at the beginning of the year was $7,000.arrow_forwardPurchasing a building for $120,000 by paying cash of $35,000 and signing a note payable for $85,000 will OA. increase both total assets and total liabilities by $120,000. B. decrease total assets and increase total liabilities by $35,000. O C. decrease both total assets and total liabilities by $35,000. OD. increase both total assets and total liabilities by $85,000. ...arrow_forward
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