CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
8th Edition
ISBN: 9781305961982
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 5SEQ
Which of the following transactions changes only the mix of assets and does not affect liabilities or
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 salaries
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Q1. Which of the following transactions changes only the mix of assets and does not affect liabilities or stockholders’ equity?
A. Borrowed $40,000 from TD Bank
B. Purchased land for $50,000 cash
C. Received $3,800 for fees earned
D. Paid $4,000 for office salaries
Accounting Concepts
Record the effect of the following transactions on the accounting equation using atable similar to the example (page 18).a. Owen inherited $20,000 and invested the cash in the business.b. Performed services for a client and received cash of $700.c. Purchased supplies on account, $1,000d. Invested personal cash of $1,000 in the business.e. Performed services to clients and received cash of $2,400f. Paid office rent expenses, $ 900 and advertising expense $100.g. Withdrew cash of $1,800 for personal use.
Prepare Income Statement and Balance Sheet.
1- On a separate piece of paper, complete the following chart to show the effect of each transaction on the accounting equation.
Transaction
Assets = Liabilities + Shareholders’ Equity
1. Owners contributed $30,000 cash.
2. Purchased property for $20,000 cash.
3. Borrowed $9,000 cash from bank.
4. Provided services for $8,000 on account.
5. Paid $5,500 cash for expenses.
6. Paid $500 cash dividend to owners.
2- Consider the same transactions as in question 1, but this time complete the following chart, using a separate sheet of paper.
Assets
=
Liabilities
+
Shareholders’ Equity
Trans.
Cash
Accounts Receivable
Property
=
Notes Payable
+
Common Stock
Retained Earnings
1.
2.
3.
4.
5.
6.
3- Total each asset, liability, and shareholders’ equity account in question 2, and prepare an income statement, a statement of shareholders’ equity, a balance sheet, and a statement of cash flows. Assume that the current year (i.e., 2020) is the company’s first year of…
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
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