FINANCIAL ACCOUNTING W/ACCESS >CI<
2nd Edition
ISBN: 9781259999024
Author: SPICELAND
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 2, Problem 2.2BE
Balance the
Using the notion that the accounting equation (Assets = Liabilities + Stockholders’ Equity) must remain in balance, indicate whether each of the following transactions is possible.
a. Cash increases; Accounts Pas-able decreases.
b. Service Revenue increases; Salaries Payable increases.
c. Advertising Expense increases; Cash decreases.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Using the notion that the accounting equation (Assets = Liabilities + Stockholders’ Equity) must remain in balance, indicate whether each of the following transactions is possible. a. Cash increases; Accounts Payable decreases. b. Service Revenue increases; Salaries Payable increases. c. Advertising Expense increases; Cash decreases.
PB5.
LO 3.4Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.
Transaction
Impact 1
Impact 2
Paid balance due for accounts payable
Charged clients for legal services provided
Purchased supplies on account
Collected legal service fees from clients for current month
Issued stock in exchange for a note receivable
1.Expenses represent a reduction in ___.
A.assets
B.revenue
C.liability
D.equity
2.You are presented a financial statement and from it you can tell what the business owed looking at a financial statement. By studying the information on the statement, you can tell what the business owns and what it owes as of a certain date. You are looking at:
A.Income Statement
B.Assets
C.Revenues
D.Balance Sheet
Chapter 2 Solutions
FINANCIAL ACCOUNTING W/ACCESS >CI<
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
Knowledge Booster
Learn more about
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
- Indicate what impact ( for increase; for decrease) the following transactions would have on the accounting equation, . Table 3.22arrow_forwardEffects of transactions on stockholders’ equity For Target Corporation (TGT), indicate whether the following transactions would (1) increase, (2) decrease, or (3) have no effect on stockholders’ equity. a. Borrowed money front the bank. b. Paid creditors. c. Made cash sales to customers. d. Purchased store equipment. e. Paid dividends. f. Paid store rent. g. Paid interest expense. h. Sold store equipment at a gain. i. Received interest revenue. j. Paid taxes.arrow_forwardFor a statement to be true, each part must be true. One detail can make an entire statement false. Write T if the statement is true. If the statement is false, write F 1.) Receiving cash in advance from a customer for services to be provided in the future causes assets to increase to increase and stockholders’ equity to increase. 2.) Expenses have the effect of decreasing retained earnings.arrow_forward
- Answer both parts otherwise I will give down vote 1(a). A company can report a net income and negative cash flows from operations both at the same time. True or False? 1 (b) . Which of these accounts can be found in the post-closing trial balance? choices - Assets, liabilities, owner’s capital and their corresponding contra accounts - Income and expenses - Assets, liabilities, owner’s capital, and owner’s drawings - Assets and liabilitiesarrow_forward____ 1. The purchase of an asset on account willA) Increase total liabilities and decrease total assets.B) Have no effect on total assets or total liabilities.C) Increase total assets and increase owner’s equity.D) Increase total assets and decrease owner’s equity.____ 2. Amounts owed by a business are referred to asA) AssetsB) EquitiesC) LiabilitiesD) CapitalE) Expenses____ 3. When an owner deposits cash in an account inthe name of the business, it is an increase toA) Cash and Accounts ReceivableB) Cash and WithdrawalsC) Cash and CapitalD) Cash and Accounts PayableE) Cash and Rent Expense____ 4. Which of the following equations is thefundamental accounting equation?A) Assets – Liabilities = Owner’s EquityB) Assets = Liabilities + Owner’s EquityC) Assets + Liabilities = Owner’s EquityD) Assets – Owner’s Equity = LiabilitiesE) Assets + Owner’s Equity = Liabilities____ 5. If an owner invests her computer and printer inthe business, there is an increase toA) Cash and CapitalB) Computer…arrow_forwardA credit is used to record an increase in all of the following accounts exceptA. Utility Expense.B. Share Capital.C. Accounts Payable.D. Service Revenue.2. Generally, all of the following financial statements can be prepared with informationfrom the trial balance exceptA. Income Statement.B. Statement of Cash Flows.C. Statement of Retained Earnings.D. Statement of Financial Position.3. The Dividends account is increased with a debit because dividendsA. are an expense.B. are declared an asset.C. reduce liabilities.D.result in a decrease in equity, so debiting Dividends would have the effect ofdecreasing Equity.4. When a company pays cash for a truck, what is the effect on the accounting equationfor that company?A. Increase assets and increase liabilities.B. Decrease assets and decrease liabilities.C. Increase assets and increase equity.D. No net change.5. Gordon Company was recently formed with a $5,000 investment in the company byshareholders. The company then borrowed $2,000 from a…arrow_forward
- QA)Choose the correct answer: 2. Which is a shareholders' equity account in the statement of financial position? Select one: a. Dividends payable. b. Marketable securities c. Issued capital. d. Accumulated depreciation. 3. Making insurance payments in advance is an example of: Select one: A. An accrued receivable transaction. B. An accrued liability transaction. C. An unearned revenue transaction. D. A prepaid expense transaction 4. Cost of goods sold is: Select one: a. An asset account. b. A permanent equity account. c. An expense account. d. A revenue account.arrow_forward1. Information of the financial performance is provided by _______ . a. Statement of profit and loss b. Statement of changes in owners c. Statement of financial position d. Cash flow statement 2. The following are terms used synonymously with equity except a. Capital b. Net Assets c. Net worth d. Revenue 3. Information about the revenue and expenses is provided by _____. a. Statement of changes in equity b. Statement of Cash Flow c. Statement of Financial position d. Statement of performance 4. Information on changes in Assets, Liabilities and Owners Equity account a. Statement of changes in equity b. Statement of Cash Flow c. Statement of Financial position d. Statement of performancearrow_forward2.1 REQUIRED■ Show the effect of the following transactions of Montagu Stores on the Accounting equation. Use “+” to denote an increase, “–” to denote a decrease and “0” to denote no change to the elements of the equation. Copy the table in your answer book and follow the example given.■ Assume that the bank balance is favorable at all times. (10)Transactions2.1.1 Received rent from the tenant, R3 000.2.1.2 Received an account from Telstar Motors for motor vehicle repairs, R2 000.2.1.3 Issued a cheque to Makro Suppliers for equipment purchased, R10 000.2.1.4 Issued a receipt to the proprietor who increased her capital contribution by R200 000.2.1.5 Received R1 000 from a debtor who settled his account.2.2 REQUIREDarrow_forward
- Ch2 Question 15: In which financial statement is the accounting equation displayed? Answer: A. Income statement B. Statement of owner's equity C. Balance sheet D. Statement of cash flows Question 16: When expenses exceed revenues, what is the name of the final figure in the income statement? Answer: A. Net Loss B. Withdrawals C. Ending Owner's Equity D. Net Incomearrow_forwardIndicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following transactions on each part of the accounting equation, . For example, for payment of an accounts payable balance, . A. Payment of principal balance of note payable B. Purchase of supplies for cash C. Payment of dividends to stockholders D. Issuance of stock for cash E. Billing customer for physician services providedarrow_forwardProblem 1-57B The Fundamental Accounting Equation Information for TTL Inc. is given below. Required: Use the relationships in the balance sheep income statement, and retained earnings statement to determine the missing values.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License