close solutoin list

EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) John Sullivan started a business. During the first month (February 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets = Liabilities + Owner’s Equity . After each transaction, show the new totals. (a) Invested cash in the business, $27,000. (b) Bought office equipment on account, $7,500. (c) Bought office equipment for cash, $1,600. (d) Paid cash on account to supplier in transaction (b), $2,300. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3A. Let’s assume John Sullivan completed the following additional transactions during February. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner’s Equity (Capital − Drawing + Revenues − Expenses) . After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Received cash from a client for professional services, $1,500. (f) Paid office rent for February, $600. (g) Paid February phone bill, $64. (h) Withdrew cash for personal use, $1,000. (i) Performed services for clients on account, $750. (j) Paid wages to part-time employee, $1,200. (k) Received cash for services performed on account in transaction (i), $400.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 2, Problem 4SEA
Textbook Problem

EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) John Sullivan started a business. During the first month (February 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets = Liabilities + Owner’s Equity. After each transaction, show the new totals.

(a) Invested cash in the business, $27,000.

(b) Bought office equipment on account, $7,500.

(c) Bought office equipment for cash, $1,600.

(d) Paid cash on account to supplier in transaction (b), $2,300.

EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3A. Let’s assume John Sullivan completed the following additional transactions during February. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner’s Equity (CapitalDrawing + RevenuesExpenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance.

(e) Received cash from a client for professional services, $1,500.

(f) Paid office rent for February, $600.

(g) Paid February phone bill, $64.

(h) Withdrew cash for personal use, $1,000.

(i) Performed services for clients on account, $750.

(j) Paid wages to part-time employee, $1,200.

(k) Received cash for services performed on account in transaction (i), $400.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 2 Solutions

College Accounting, Chapters 1-27
Show all chapter solutions
Ch. 2 - When payment is made on an existing debt, which...Ch. 2 - Which of the following accounts does not appear on...Ch. 2 - Checkpoint Exercises Label each of the following...Ch. 2 - What is missing from the accounting equation...Ch. 2 - What are the effects of the following transactions...Ch. 2 - Classify the following accounts as assets (A),...Ch. 2 - Name and define the six major elements of the...Ch. 2 - Name and define the six major elements of the...Ch. 2 - List the three basic questions that must be...Ch. 2 - What is the function of an income statement?Ch. 2 - What is the function of a statement of owners...Ch. 2 - What is the function of a balance sheet?Ch. 2 - What are the three basic phases of the accounting...Ch. 2 - SERIES A EXERCISES ACCOUNTING ELE MENT S Label...Ch. 2 - THE ACCOUNTING EQUATION Using the accounting...Ch. 2 - Assets following (d): 32,200 EFFECTS OF...Ch. 2 - EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS)...Ch. 2 - FINANCIAL STATEMENT ACCOUNTS Label each of the...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET INCOME...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET INCOME...Ch. 2 - SERIES A PROBLEMS THE ACCOUNTING EQUATION Dr. John...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - ACCOUNTING ELEMENTS Label each of the following...Ch. 2 - THE ACCOUNTING EQUATION Using the accounting...Ch. 2 - EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS)...Ch. 2 - EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS)...Ch. 2 - FINANCIAL STATEMENT ACCOUNTS Label each of the...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET INCOME...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET LOSS...Ch. 2 - SERIES B PROBLEMS THE ACCOUNTING EQUATION Dr....Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION...Ch. 2 - STATEMENT OF OWNERS EQUITY Based on Problem 2-9B,...Ch. 2 - BALANCE SHEET Based on Problem 2-9B, prepare a...Ch. 2 - MANAGING YOUR WRITING Write a brief memo that...Ch. 2 - MASTERY PROBLEM Lisa Vozniak started her own...Ch. 2 - CHALLENGE PROBLEM In this chapter, you learned...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
How can technology help to build long-term customer relationships?

Foundations of Business (MindTap Course List)

What is inflation and what causes it?

Essentials of Economics (MindTap Course List)

What does cross-referencing mean in the posting process?

College Accounting (Book Only): A Career Approach

What purpose do protocols serve?

Accounting Information Systems

Define the term product

MKTG 12:STUDENT ED.-TEXT

Describe what a tariff is and its economic effects.

Principles of Macroeconomics (MindTap Course List)

REAL OPTIONS Use a spreadsheet model to evaluate the project analyzed in problem 13-7.

Fundamentals of Financial Management (MindTap Course List)

CAPITAL BUDGETING CRITERIA Your division is considering two projects. Its WACC is 10%, and the projects after-t...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Is a trade surplus indicative of a strong, healthy economy? Why or why not?

Economics: Private and Public Choice (MindTap Course List)