College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 4QY
R. Nelson invests his personal computer, with a fair market value of $2,500, in the business. How would this transaction be recorded?
- a. A debit to R. Nelson, Capital, $2,500.
- b. A credit to Cash, $2,500.
- c. A credit to Professional Fees, $2,500
- d. A debit to Computer, $2,500.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $31,000 and has cash on hand of $18,000 contributed by Lanni’s owners.
For each of the following transactions, identify the real and/or financial assets that trade hands. Choose one option for following blank: A. real asset. B. financial asset. C. real liability. D. Finanical liability.
The bank loan is a Financial liability for Lanni, and a Financial asset for the bank. The cash Lanni receives is a Financial asset .
1. The new financial asset destroyed or created is Lanni's promissory note to repay the loan.
Lanni uses the cash from the bank plus $18,000 of its own funds to finance the development of new financial planning software.
Lanni transfers financial asset (cash) to the software developers. In return, Lanni receives the completed software package, which is a real asset.
Lanni exchanges the real asset (the software) for a Financial asset, which is 1,400 shares of…
Which of the following transactions would increase the cash by RO 5000 and increase the revenue by RO 5000?
a.
Purchased Furniture RO 5000
b.
Took Loan of RO 5000 from Bank Nizwa
c.
Performed service to the customer RO 5000 and the customer paid cash RO 5000
d.
Paid RO 5000 for the creditors
1. Green Company buys a laptop computer on credit for P72,000. The transaction will affect the: assets, liabilities and owner's equity, assets and liabilities only, liabilities and owner's equity only, or assets only?
2. An accountant has debited an asset account for P1,000 and credited a liability account for P500. Which of the following would be an incorrect way to complete the recording of the transaction?
a. credit an owner's equity account for P500
b. credit an asset account for P500
c. debit an owner's equity account for P500
d. credit another liability account for P500
3. An entry to record the owner's initial cash investment P500,000 will require a:
a. credit to Capital account for P500,000
b. Debit to Capital account for P500,000
c. credit to Cash account for P500,000
d. Debit to Loans Payable account for P500,000
Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 3QYCh. 2 - R. Nelson invests his personal computer, with a...Ch. 2 - When preparing a trial balance, which of the...Ch. 2 - What would be the net income for Floress Catering?...Ch. 2 - On which financial statement(s) would R. Flores,...Ch. 2 - What is the amount of ending capital shown on the...Ch. 2 - Floress Catering purchased equipment that cost...Ch. 2 - Prob. 1DQ
Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - Prob. 1ECh. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - What Would You Say? A fellow accounting student...Ch. 2 - Prob. 3A
Additional Business Textbook Solutions
Find more solutions based on key concepts
The amount that should be recorded by Company R for building under historical cost principle.
Financial Accounting (11th Edition)
18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
How would the decision to dispose of a segment of operations using a split-off rather than a spin-off impact th...
Advanced Financial Accounting
Place the letter of the appropriate accounting cost in Column 2 in the blank next to each decision category in ...
Fundamentals Of Cost Accounting (6th Edition)
Plantwide and Departmental Overhead Allocation; Activity-Based Costing; Segmented Income Statements Koontz Comp...
Introduction To Managerial Accounting
BE1-7 Indicate which statement you would examine to find each of the following items: income statement (IS), ba...
Financial Accounting: Tools for Business Decision Making, 8th Edition
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
- A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500. What is total income for the month?arrow_forwardA business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?arrow_forwardDiscuss how each of the following transactions will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. A company purchased $450 worth of office supplies on credit. B. The company parking lot was plowed after a blizzard. A check for $75 was given to the plow truck operator. C. $250 was paid on account. D. A customer paid $350 on account. E. Provided services for a customer, $500. The customer asked to be billed.arrow_forward
- For each transaction, indicate whether the assets, liabilities, or owner’s equity increased (I),decreased (D) or Did not Change (NE). Assets, Liabilities, and Owner’s Equity 1 Purchase of supplies on credit2 Paid utility expense3 Received a loan granted by the bank4 Withdraws cash from the business5 Paid salaries and wages6 Received cash from customers as sales7 Received a promissory note from rentalbusiness8 Paid advertising expense9 Paid ₱1,000 to creditors10 Billed customer for video rentalarrow_forwardEl Granado established the EG Data Encoders on May 15, 2014. The following transactions occurred during the month. El Granado invested P157,000 cash to establish the business Bought office desks and filing cabinet for cash, P15,150. El Granado invested in the business her personal computer with a fair value of P57,500. Bought computer software for use in the business from Dela Torre Computer Center for P39,000 paying P15,000 down; the balance is due in thirty days. Paid rent for the month, P5,300. Received cash for services rendered, P5,160. Ordered a panaflex sign for P9,000 from Royal Bright Enterprises, with P5,000 as down payment and the balance due when installed. Received bill for advertising from Buy and Sell newspaper, P3,320. Bought print paper and stationary on account, P2,290. Received and paid electric bill, P1,240. Paid bill for advertising recorded previously in transaction (h). Received cash for services rendered, P10,900. Paid salaries to employees, P8,400. El Granado…arrow_forwardOn 1-1-2020, Mr. A started business of dealing in electric fans by investing cash Rs. 200000 and equipment at fair value of Rs. 20000 from his personal sources. The other transactions of the business for the month were as under:2-1-2020, purchased furniture for Rs. 20000 on account/on credit from Mr. B.5-1-2020, sold furniture for Rs. 22000 on cash.10-1-2020, purchased computer for cash Rs. 30000.16-1-2020, borrowed cash Rs. 50000, an interest free from HBL.20-1-2020, make partial payment to bank of Rs.30000.25-1-2020, purchased TV for cash Rs. 10000..31-1-2020, paid rent of the office Rs. 2000 for the month of January.Required: Make Accounting equation.arrow_forward
- T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be used in his business. Transactions On March 1, 20–, when T.J. began his business, he invested in the business a bank balance of $8000, an automobile worth $14 000, and equipment costing $6000. **DON’T FORGET TO CALCULATE THE OPENING CAPITAL BALANCE. (Remember the fundamental accounting equation!!) ** Issued cheque for $465 to Royalty Trust Co. in payment of the monthly rent. Issued cheque for $200 to the owner for personal use. Received a bill in the amount of $900 from Eustace Bros. for office supplies purchased on account. Issued cheque for $350 to West End Garage as payment for repairs to the owner’s personal car. Issued bill to F. Morsi for services performed, $500. Issued cheque for $400 to pay the office secretary’s weekly wage. Received an invoice for $90 from Regal Oil for gasoline and oil used in the business automobile, due in 30 days.…arrow_forwardEmerita Modesto established a. Deposited P120,000 in a bank account in the name of the business. b. Bought office equipment on account from PHINMA Company, P31,000 . her own business called Modesto's Self-storage. The account leadings are presented below. Transactions completed during the moth follow. c. Paid rent for the month, F24,00 . d. Bought supplies cash, P4,500 .. e. Paid salaries, P9,800. f. Received cash for storage services, P36,000. g. Received and paid the utility bill, P2, 520. h. Paid Errol Umerez Graphics for advertising, P4,28C . (The bill was not previously recorded.). 1. Paid for a one-year liability insurance policy, P8,350. 3. Billed customers for storage services an account, P33, 700. k. Received cash for storage services, P23,000. 1. Paid salaries, P9,900. m. Paid PHINMA Company P11,000 as part payment on the office equipment bought in transaction b. n. Modesto withdrew P12,000 for personal use. Required: 1. Record the transactions in columnar form, write plus…arrow_forwardShow the effect of the following transactions in the accounting equation. For example: No. Account DR Account CR A = OE + L 1. Furniture Capital + 20 000 + 20 000 0 The owner deposited R 60 000 into business current account as his contribution. Sold goods on credit to F Malila for R 7000 (Cost price R4 500). Business obtained a loan of R30 000 from FCB Bank, the money was transferred to the business current account. Bought stationery on credit, R300. Owner withdrew R400 for personal use.arrow_forward
- On 1-1-2020, Mr. A started business of dealing in electric fans by investing cash Rs. 200000 and equipment at fair value of Rs. 20000 from his personal sources. The other transactions of the business for the month were as under: 2-1-2020, purchased furniture for Rs. 20000 on account/on credit from Mr. B. 5-1-2020, sold furniture for Rs. 22000 on cash. 10-1-2020, purchased computer for cash Rs. 30000. 10-1-2020, company purchased Rs. 450 worth of office supplies on credit. 16-1-2020, borrowed cash Rs. 50000, an interest free from HBL. 20-1-2020, make partial payment to bank of Rs.30000. 25-1-2020, An advertisement was run in the newspaper at a total cost of Rs. 250. Cash was paid when the order was placed. 31-1-2020, paid rent of the office Rs. 2000 for the month of January. Required: Make Accounting equation. Question: For each of the following items, indicate whether a debit or a credit applies. increase in retained earnings decrease in prepaid rent increase in dividends decrease…arrow_forwardQ1. Mr. X has recorded good relations with his partners as an asset in the balance sheet? Is he violating anyaccounting principles? Why or why not support your answers with reasons?Q2. Javlon purchased a furniture for $10000 on credit? In books he passed an entry of Cash A/c debit toFurniture account credit $10000. Do you agree with the journal entry? If not tell the correct entry? Alsopass a rectification entry?Q3. On December 31, Javlon Company, a partnership between Fogg and Shelhon, realized a $66,000 netincome. According to the partnership agreement, the partners split the profits on a 3:2 basis. Determineeach partner’s split and the journal entries you will make to record the split of net income.arrow_forwardWhich of the following journal entries would be recorded if Jasem Kahlil started a business, and then deposited cash of OR6,000 into the business's bank account? Select one: O a. Jasem Kahlil, capital 6,000 Accounts payable 6,000 O b. Jasem Kahlil, capital 6,000 Cash 6,000 O c. Accounts payable 6,000 Cash 6,000 O d. Cash 6,000 Jasem Kahlil , capital 6,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License