COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 2, Problem 1.6SRA
To determine
Calculate the amount of supplies by using
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The consignee maintains an account called Consignment In. The following transactions will require a debit to this account, except:
a. Remittances to the consignor
b. Consignee expenses
c. Commissions of the consignee
d. Consignee sales
The primary difference between a balance sheet and an accounting statement of affairs is that
a. owners’ equity is not considered in the statement of affairs.
b. assets are arranged in a different sequence.
c. liabilities are arranged in a different sequence.
d. a balance sheet reflects book values, while a statement of affairs emphasizes realization values.
Africa Traders, on 28 February 2020, received a cash amount of R1 560 from Mr. A South, a trade receivable whose account was previously written off as irrecoverable by Africa Traders as Mr. A South was previously declared insolvent. Africa Traders is not a registered VAT vendor.
What will the effect be of the above transaction in the accounting equation of Africa Traders?
Select one:
a.
ACCOUNT DEBITED
ACCOUNT CREDITED
EQUITY
= ASSETS
- LIABILITIES
Bank
Credit loss recovered
- R1 560
- R1 560
R0
b.
ACCOUNT DEBITED
ACCOUNT CREDITED
EQUITY
= ASSETS
- LIABILITIES
Bank
Trade receivables
R0
+ R1 560
- R1 560
R0
c.
ACCOUNT DEBITED
ACCOUNT CREDITED
EQUITY
= ASSETS
- LIABILITIES
Bank
Credit loss recovered
+ R1 560
+ R1 560
R0
d.
ACCOUNT DEBITED
ACCOUNT CREDITED
EQUITY
= ASSETS
- LIABILITIES
Credit loss recovered
Bank
+ R1 560
- R1 560
R0
What is the impact on the accounting equation when a payment of accountable payable is made?
what is the impact on accounting equation when an account receivable is collected?
what is the impact on the accounting equation when a sell occurs?
what is the impact on the accounting equation when stock is issued, in exchange for assets?
which of the following accounts is increased by a debit?
which of the following camp do not increase with a debit entry?
which of the following pairs increase with credit entries?
which of the following pairs of accounts are impacted the same with debits and credits?
which of the following count normally have a debit balance?
what type of account is prepaid insurance?
Chapter 2 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
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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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.arrow_forwardAn accounting transactioin simultaneously decreases assets and equity.This transaction is explained by which of the following senarios: A.An expense was incurred on credit B.Accounts Payable owed were paid with cash C.An asset was purchased with cash D.The onwer withdrew cash from the businessarrow_forwardAn accounting trasaction simultaneously decreases assets and equity.This transaction is explained by which of the following scenarios: A.An expense was incurred on credit B.Accounts Payable owed were paid with cash C.An asset was purchased with cash D.The owner withdrew cash from the businessarrow_forward
- Which of the following errors would cause the BalanceSheet and Statement of Owner’s Equity columns of a worksheet to be out of balance? a. Entering a revenue amount in the Balance Sheet and Statement of Owner’s Equity Debit column. b. Entering a liability amount in the Balance Sheet and Statement of Owner’s Equity Credit column. c. Entering an expense amount in the Balance Sheet and Statement of Owner’s Equity Debit column. d. Entering an asset amount in the Income Statement Debit column. e. Entering a liability amount in the Income Statement Credit column.arrow_forwardWhat account will not be found in the financial statements of a company using accrual basis of accounting? *A. accrued expenseB. prepaid expenseC. depreciation expensesD. bad debts expenseE. answer not givenarrow_forward1. When an error is discovered after closing the nominal accounts, one of the accounts to be credited or debited is the owner’s capital account. True or False?2. All property, plant and equipment are capitalized. True or False?3. Accrual basis of accounting recognizes sales on credit and collection from accounts receivable. True or false?arrow_forward
- An accountant prepares a statement of financial position for a business. In this statement,the equity of the owner was shown next to the liabilities. This confused the owner, who argued: ‘My equity is my major asset and so should be shown as an asset on the statement of financial position.’ How would you explain this misunderstanding to the owner?arrow_forwardWhich of the following statements concerning the debit-credit feature of the accounting equation is CORRECT? A debit entry will decrease a liability account and increase an asset account Debits is entered on the right and credit are entered on the left liability account should be credited upon payment of an account payable. Stock sold to investors increases stockholders' equity and is recorded as a debitarrow_forwardUnder the allowance method of uncollectible accounts, the entry to write off a customer’s account affects the accounting equation by: decreasing an asset and decreasing stockholders’ equity (expense) increasing an asset and decreasing an asset increasing a liability and decreasing a liability decreasing a liability and increasing stockholders’ equity (revenue)arrow_forward
- Which of the following is false regarding the balancesheet?a. The accounts shown on a balance sheet represent thebasic accounting equation for a particular business.b. The retained earnings balance shown on the balancesheet must agree with the ending retained earnings balance shown on the statement of retained earnings.c. The balance sheet summarizes the net changes in specific account balances over a period of time.d. The balance sheet reports the amount of assets, liabilities,and stockholders’ equity of a business at a point in time.arrow_forwardWhy is the Equity of an owner shown in the Liabilities and not in the Assets on a companies Financial Statement?arrow_forwardWhich of the following statements would be consideredtrue regarding debits and credits?a. In any given transaction, the total dollar amount of the debitsand the total dollar amount of the credits must be equal.b. Debits decrease certain accounts and credits decreasecertain accounts.c. Liabilities and stockholders’ equity accounts usually end incredit balances, while assets usually end in debit balances.d. All of the above.arrow_forward
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