Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Chapter 2, Problem 2.7APWC
To determine
External events:
External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Examples of external transactions include borrowing of cash from bank, purchase of inventory, and sale to a customer.
There are six steps involved to measure the external transaction. They are as follows:
Step1: Identify the accounts that are affected by an external transaction using the source documents.
Step 2: Impact of the transactions on the
Step 3: Transaction which results in a debit or credit to account balances should be assessed.
Step 4: The assessed transactions which are resulted in debit or credit is then recorded in journal.
Step 5: The transactions which are recorded in journal are posted to the general ledger.
Step 6: At last, the
To Write: A memo to the instructor describing each step of the six-step measurement process for each of the three transactions.
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Required information
Use the following information for Exercises 25-27 below. (Algo)
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On December 31, the company’s records show the following selected accounts and amounts for the month of December.
Cash
$ 25,260
C. Camry, Withdrawals
$ 5,890
Accounts receivable
22,270
Consulting revenue
26,910
Office supplies
5,130
Rent expense
9,440
Office equipment
19,900
Salaries expense
5,500
Land
43,930
Telephone expense
750
Accounts payable
10,780
Miscellaneous expenses
420
C. Camry, Capital
100,800
Exercise 2-25 (Algo) Preparing an income statement LO P1
Use the above information to prepare a December income statement for the business.
The following transactions were completed by the company:
The company completed consulting work for a client and immediately collected $5,500 cash.
The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days.
The company paid an assistant $1,400 cash as wages for the period.
The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b.
The company paid $700 cash for this period's cleaning services.
Required:Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Winnie Villanueva is a painting contractor. During the month of April, she completed the following transactions:
April 2 Invested in the business painting equipment valued at P12, 300 and placed P71, 000 in abusiness checking account.3 Acquired a service vehicle costing P80, 000. Paid P50, 000 cash and signed a note for thebalance.4 Purchased painting supplies on account for P3, 200.5 Completed a painting job and billed the customer P4, 800.7 Received P1, 500 cash for painting an apartment room.10 Purchased painting supplies for P1, 600 cash.11 Received a P4, 800 check from the customer billed on April 5.12 Paid P4, 000 for an insurance policy for a one-year coverage.13 Billed customer P6, 200 for a painting job.14 Paid the assistant P1, 500 for twenty-five hours’ work.15 Paid P400 for a tune-up of the service vehicle.18 Paid for the painting supplies purchased on April 4.20 Purchased a new ladder for P6, 000 and painting supplies for P2, 900, on account.22 Received a telephone bill…
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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