Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 2, Problem 2.1AP
Below is a list of activities for Jayhawk Corporation.
Analyze the impact of transactions on the
Required:
For each activity, indicate whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders’ equity.
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Students have asked these similar questions
A. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable.
B. Calculate net income for the period.
C. How much has been earned by the company’s operations but not distributed to shareholders?
D. What is the total investment by shareholders?
E. How much do customers owe the company?
1. What amount of total assets does the company report on its balance sheet?
2. What amount of total liabilities does the company report on its balance sheet?
3. Using the accounting equation, determine the company’s stockholders’ equity. Compare this amount to the amount of stockholders’ equity reported on the company’s balance sheet.
A business will construct its financial statements in a particular order because they are interrelated. This means that items formulated in an earlier statement feed into the subsequent statements, and changes to items on one financial statement can have compounding effects on the overall financial position of a company.
1. Which of the following is one reason the statement of owner's equity is prepared after the income statement?
2. Which of the following is one reason the statement of owner's equity is prepared before the balance sheet?
Chapter 2 Solutions
Financial Accounting - Access
Ch. 2 - Prob. 1RQCh. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - 10.Suzanne knows that an increase to an expense...
Ch. 2 - 11.What is a journal? What is a journal entry?Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - 15.Describe the events that correspond to the...Ch. 2 - 16.What does a T-account represent? What is the...Ch. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - 20.If total debits equal total credits in the...Ch. 2 - List steps in the measurement process (LO21) Below...Ch. 2 - Balance the accounting equation (LO22) Using the...Ch. 2 - Suppose a local company has the following balance...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the effect of debits and credits on...Ch. 2 - Prob. 2.6BECh. 2 - Record transactions (LO24) The following...Ch. 2 - Prob. 2.8BECh. 2 - Analyze T-accounts (LO25) Consider the following...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.11BECh. 2 - Correct a trial balance (LO26) Your study partner...Ch. 2 - Listed below are several terms and phrases...Ch. 2 - Prob. 2.2ECh. 2 - Analyze the Impact of transactions on the...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the components of retained earnings...Ch. 2 - Indicate the debit or credit balance of accounts...Ch. 2 - Associate debits and credits with external...Ch. 2 - Prob. 2.8ECh. 2 - Identify transactions (LO24) Below are recorded...Ch. 2 - Prob. 2.10ECh. 2 - Record transactions (LO24) Bearcat Construction...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Prob. 2.14ECh. 2 - Post transactions to T-accounts (LO25) Consider...Ch. 2 - Identify transaction (LO25) Below are T-accounts....Ch. 2 - Prob. 2.17ECh. 2 - Prepare o trial balance (LO26) Below is the...Ch. 2 - Prob. 2.19ECh. 2 - Prob. 2.20ECh. 2 - Below is a list of activities for Jayhawk...Ch. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Refer to the transactions described in P24A. Keep...Ch. 2 - Prepare a trial balance (LO26) Below are the...Ch. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Analyze the impact of transactions on the...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Record transactions (LO24) Flip Side of P25B Eli...Ch. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.9BPCh. 2 - Prob. 2.1APCPCh. 2 - Prob. 2.2APFACh. 2 - The Buckle, Inc. Financial Analysis Financial...Ch. 2 - Prob. 2.4APCACh. 2 - Prob. 2.5APECh. 2 - Prob. 2.6APIRCh. 2 - Prob. 2.7APWC
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- The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation.arrow_forwardIndicate what impact ( for increase; for decrease) the following transactions would have on the accounting equation, . Table 3.22arrow_forwardWhich of the following statements relating to analysis of business documents or transactions is/are CORRECT? I. The accountant determines the impact of the transactions on the financial position. II. Financial position is represented by the equation "assets equal liabilities plus equity" a. Neither Statements I nor Statement II b. Statements I only c. Both Statements I and II d. Statements II onlyarrow_forward
- Which of the following statements about users of accounting information is correct? a. Management is an external user. b. Taxing authorities are internal users. c. Present creditors are external users. d. Regulatory authorities are internal users. 2. Performing services for cash will have the following effects on the components of the basic accounting equation: a. increase assets and decrease owner’s equity. b. increase assets and increase owner’s equity. c. increase assets and increase liabilities. d. increase liabilities and increase owner’s equity. 3. Which of the following events is recorded in the accounting records? a. Equipment is purchased on account. b. An employee is terminated. c. A proposal to diversify investment in the business. d. The manager is hired for a salary of $ 3,000 per month.arrow_forwardHere is question The purpose of this assignment is for you to demonstrate your ability to record business transactions and then prepare a properly formatted income statement and balance sheet. The one additional requirement is that you answer the questions that you find below. Questions to be answer 1. What is the company's ending Cash balance? What is the company's ending Equity? Why is cash not equal to equity? 2. What is the company's net income for the period? 3. If you had to repay your creditors today, could you? Explain. 4. The company made a small amount of net income over the month. Explain why the equity actually decreased over the period. 5. You have recorded journal entries for the period of a month. If you were told that the business license in T12 was a annual expense, would this impact the reported net income? Explain why or why not.arrow_forwardWhich 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_forward
- he following attributes are correct in respect of accounting equation except one of them: O a. Accounting equation shows the financing sources and the use of finance in a business O b. Accounting equation always underlies the accounting entries made in the b0oks of account. O c. Accounting equation is written as follows: ASSETS + Liabilities = capitalarrow_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_forwardAnswer the following question1) Explain the purpose of GAAP (Generally Accepted Accounting Principles), including the organization currently responsible for the creation and governance of these standards?2) How are assets and liabilities classified as either current or long term? Explain with example. 3) If a business had a net loss for the year, what would be the closing entry to close income summary and transfer the net loss to the capital account? Explain with example.4) The statement of changes in financial position was designed to enable financial statement users to answer questions like these:a) Where did the profit go?b) What do you mean by dividend? Explainc) How was it possible to distribute dividends in the presence of a loss?arrow_forward
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