CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
8th Edition
ISBN: 9781305961982
Author: Carl Warren
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 2, Problem 4CDQ
To determine
Concept Introduction:
Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:
3
To Indicate:
The effect of each error on the accounting equation
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.a. The payment of cash for the purchase of office equipment of $12,900 was debited to Land for $12,900 and credited to Cash for $12,900.b. The payment of $1,840 on account was debited to Accounts Payable for $184 and credited to Cash for $1,840.c. The receipt of cash on account of $3,800 was recorded as a debit to Cash for $8,300 and a credit to Accounts Receivable for $3,800.
I am not sure what math to use for the correct number? I put 59,000 but it was wrong , can you help?The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $59,000; Dividends, $2,000; Fees Earned, $56,000; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Prepare the third closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Use the following account information, and also consider the adjustment data provided (assume accounts have normal balances). Equipment was recently purchased, so there is neither depreciation expense nor accumulated depreciation.
Accounts Payable
$28,000
Accounts Receivable
8,000
Cash
29,000
Common Stock
35,000
Dividends
8,000
Equipment
68,000
Notes Payable (due next month)
28,000
Salaries Expense
42,000
Salaries Payable
2,000
Service Revenue
71,000
Supplies
5,000
Transportation Expense
4,000
Adjustments needed:
Remaining unpaid Salaries due to employees at the end of the period, $0
Accrued Interest Payable at the end of the period, $7,000
Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.
Chapter 2 Solutions
CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
Ch. 2 - The purchase of land for $50,000 cash was...Ch. 2 - The receipt of $8,000 cash for fees earned was...Ch. 2 - If total assets increased $20,000 during a period...Ch. 2 - Prob. 4SEQCh. 2 - Which of the following transactions changes only...Ch. 2 - Prob. 1CDQCh. 2 - Prob. 2CDQCh. 2 - Indicate whether the following error would cause...Ch. 2 - Prob. 4CDQCh. 2 - Prob. 5CDQ
Ch. 2 - Capstone Consulting Services acquired land 5 years...Ch. 2 - Prob. 7CDQCh. 2 - Assume that Esquire Consulting erroneously...Ch. 2 - Prob. 9CDQCh. 2 - Assume that as of January 1, 20Y8, Sylvester Con-...Ch. 2 - Using the January 1 and December 31, 20Y8, data...Ch. 2 - Accounting equation Determine the missing amount...Ch. 2 - Accounting equation The Walt Disney Company (DIS)...Ch. 2 - Accounting equation Campbell Soup Co. (CPB) had...Ch. 2 - Accounting equation The following are recent year...Ch. 2 - Prob. 2.5ECh. 2 - Effects of transactions on stockholders’ equity...Ch. 2 - Effects of transactions on Accounting equation...Ch. 2 - Effects of transactions on Accounting equation A...Ch. 2 - Effects of transactions on stockholders’ equity...Ch. 2 - Effects of transactions on Accounting equation On...Ch. 2 - Nature of transactions Cheryl Alder operates her...Ch. 2 - Net income and dividends The income statement of a...Ch. 2 - Net income and stockholders’ equity for four...Ch. 2 - Prob. 2.14ECh. 2 - Prob. 2.15ECh. 2 - Balance sheet, net income, and cash flows...Ch. 2 - Income statement After its first month of...Ch. 2 - Statement of stockholders’ equity Using the...Ch. 2 - Prob. 2.19ECh. 2 - Statement of cash flows Using the financial data...Ch. 2 - Effects of transactions on Accounting equation...Ch. 2 - Prob. 2.22ECh. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - P2-3 Financial statements The following amounts...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Missing amounts from Financial statements The...Ch. 2 - Financial statements Alpine Realty. Inc.,...Ch. 2 - Prob. 2.1MBACh. 2 - Prob. 2.2MBACh. 2 - MBA 2-3 Common-sized income statements Delta Air...Ch. 2 - MBA 2-4 Common-sized income statements Southwest...Ch. 2 - Prob. 2.5MBACh. 2 - MBA 2-6 Common-sized income statements Kellogg...Ch. 2 - MBA 2-7 Common-sized income statements General...Ch. 2 - Common-sized income statements Using your answers...Ch. 2 - Prob. 2.9.1MBACh. 2 - Prob. 2.9.2MBACh. 2 - Business emphasis Assume that you are considering...Ch. 2 - Business emphasis Assume that you are considering...Ch. 2 - Business emphasis Assume that you are considering...Ch. 2 - Prob. 2.2CCh. 2 - Prob. 2.3CCh. 2 - Prob. 2.4.1CCh. 2 - Prob. 2.4.2CCh. 2 - Financial information Yahoo.com’s (YHOO) finance...Ch. 2 - Prob. 2.4.4CCh. 2 - Prob. 2.4.6CCh. 2 - Prob. 2.4.7CCh. 2 - Prob. 2.4.8CCh. 2 - Prob. 2.4.9CCh. 2 - Financial information Yahoo.com’s (YHOO) finance...
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
- In the trial balance below, total debits do not equal total credits. Find and correct the likely error(s) to bring the totals into balance. Debit Credit Cash 158,000 Office Supplies 25,000 Equipment 180,000 Accum. Depreciation—Equipment 44,000 Accounts Payable 47,700 Wages Payable 13,000 W. Shannon, Capital 20,970 W. Shannon, Withdrawals 25,000 Entertainment Revenue 338,000 Rent Expense 26,800 Gas and Oil Expense 3,000 Wage Expense 219,700 Advertising Expense 12,500 Legal Expense 11,400 Totals 636.400 488,670 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardWhich of the following transactions changes only the mix of assets and does not affect liabilities or stockholders’ equity? A. Borrowed $40,000 from First National Bank B. Purchased land for $50,000 cash C. Received $3,800 for fees earned D. Paid $4,000 for Office salariesarrow_forwardWhich of the following balances is always due to an error? a.Dividends - debit balance of $2,500 b.Accounts Payable - debit balance of $600 c.Retained Earnings - debit balance of $1,000 d.Office Equipment - credit balance of $500arrow_forward
- An asset was purchased for RO 1,000 by making a cash payment of RO 200 while the remaining amount is on account. What would be the effect on total assets and total liabilities of the business? a. Assets decreased by RO 800 and liabilities decreased by RO 800 b. Assets increased by RO 800 and liabilities increased by RO 800 c. Assets decreased by RO 800 and liabilities increased by RO 800 d. Assets increased by RO 800 and liabilities decreased by RO 800arrow_forwardAssume that Sunshine Realty Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroneously recorded the receipt as a debit to Cash, $300,000, and a credit to Fees Earned, $300,000. (a) How would this error affect the equality of the trial balance? (b) How would this error affect the income statement, statement of owner’s equity, and balance sheet?arrow_forwardAfter all adjustments have been made, but before the accounts have been closed, the following balances as of 12/31/22 were taken from the general ledger (listed in random order): Accounts Payable $ 40,000 Rent Expense $ 21,400 Accounts Receivable 54,500 Salary Expense 66,000 Accumulated Depreciation 83,325 Salaries Payable 150 Cash 7,150 Service Revenue 181,000 Depreciation Expense 23,500 Supplies 2,500 Equipment 155,000 Supplies Expense 5,500 Insurance Expense 8,600 Chuck Nevitt, Capital 100,950 Prepaid Insurance 5,275 Chuck Nevitt, Drawing 29,000 Journalize the 2 closing entries required to close the appropriate accounts (omit the 4th journalizing step of providing an explanation): JOURNAL Date Post. DR CR 12/31…arrow_forward
- Prepare an adjusted trial balance from the following account information, considering the adjustment data provided (assume accounts have normal balances). Equipment was recently purchased, so there is neither depreciation expense nor accumulated depreciation.Accounts Payable 9,500; Accounts Receivable 14,260; Cash 22,222; Common Stock 30,000; Dividends 5,000; Equipment 12,000; Prepaid Insurance 25,444; Land 20,000; Notes Payable 26,000; Retained Earnings 12,815; Insurance Expense 12,689; Service Revenue 89,550; Supplies 2,750; Salaries Expense 53,500. Adjustments needed: Salaries due to employees, but unpaid at the end of the period, $2,000Insurance still unexpired at end of the period, $12,000arrow_forwardFor the two independent cases that follow, determine the missing amount for each letter. (Hint: You might not be able to calculate them in the order in which they appear.) Case 1 Case 2 Revenues $114,700 $Enter a dollar amount. E Expenses Enter a dollar amount. A 165,000 Net earnings 39,800 78,400 Dividends declared Enter a dollar amount. B 19,900 Retained earnings: Beginning of year 269,000 337,700 End of year 297,800 Enter a dollar amount. F Total assets: Beginning of year 378,700 599,500 End of year Enter a dollar amount. C 747,250 Total Liabilities: Beginning of year 8,400 214,100 End of year 407,400 279,500 Common shares: Beginning of year 101,300 47,700 End of year 151,950 Enter a dollar amount. G Proceeds from common shares issued during the year Enter a dollar amount.…arrow_forwardHow are revenues and expenses reported on the income statement under (a) the cash basis of accounting and (b) the accrual basis of accounting? Explain the purpose of the accounts Depreciation Expense and Accumulated Depreciation. Is it customary for the balances of the two accounts to be equal? (c) In what financial statements, if any, will each account appear? Why are adjustments needed at the end of an accounting period? Employees performed services in 20Y8, but the wages were not paid until 20Y9. During which year would the wages expense be reported on the income statement under (a) the cash basis? (b) the accrual basis?arrow_forward
- The selected transactions below were completed by Cota Delivery Service during July: Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list: Increase in an asset, decrease in another asset. Increase in an asset, increase in a liability. Increase in an asset, increase in stockholders' equity. Decrease in an asset, decrease in a liability. Decrease in an asset, decrease in stockholders' equity. 1. Received cash in exchange for common stock, $35,000.c 2. Purchased supplies for cash, $1,100. 3. Paid rent for October, $4,500. 4. Paid advertising expense, $900. 5. Received cash for providing delivery services, $33,000. 6. Billed customers for delivery services on account, $58,000. 7. Paid creditors on account, $2,900.arrow_forwardThe following transactions were completed by the company a. The owner (Alex Carr) invested $16,800 cash in the company b. The company purchased supplies for $950 cash c. The owner (Alex Carr) invested $10,900 of equipment in the company d. The company purchased $290 of additional supplies on credit e. The company purchased land for $9,900 cash Required: Enter the impact of each transaction on individual items of the accounting equation (Enter decreases to account balances with a minus sign) Assets = Liabilities + Equity Cash + Supplies + Equipment + Land = Accounts Payable + A. Carr, Capital − A. Carr, Withdrawals + Revenue − Expenses a. + + + = + − + − b. + + + = + − + − Bal. 0 + 0 + 0 + 0 = 0 + 0 − 0 + 0 − 0 c. + + + = + − + − Bal. 0 + 0 + 0 + 0 = 0 + 0 − 0 + 0 − 0 d. + + + = + − + − Bal. 0 + 0 + 0 + 0 = 0 + 0 − 0 + 0 − 0 e. + + + = + − + −…arrow_forwardOnly one of the following statements correctly describes the effect of a transaction on the financial statements. Which one? A. The purchase of a motor van for £10,000 cash will increase the assets (motor van) by £10,000 and decrease equity by £10,000 B. A debtor who pays an amount owed £1,000 will result in an increase in sales by £1,000 and an increase in cash by £1,000 C. Goods purchased on credit £2,000 will increase inventories by £2,000 and increase trade payables by £2,000 D. The payment of a trade payable by £3,000 will decrease the claims (payables) by £3,000 and decrease equity by £3,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License