Concept explainers
EFFECTS OF TRANSACTIONS (
(a) Invested cash in the business, $30,000.
(b) Bought office equipment on account, $4,500.
(c) Bought office equipment for cash, $1,600.
(d) Paid cash on account to supplier in transaction (b), $2,000.
EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Let’s assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the
(e) Performed services and received cash, $3,000.
(f) Paid rent for March, $1,000.
(g) Paid March phone bill, $68.
(h) Jon Wallace withdrew cash for personal use, $800.
(i) Performed services for clients on account, $900.
(j) Paid wages to part-time employee, $500.
(k) Received cash for services performed on account in transaction (i), $500.
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Chapter 2 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)