Financial Accounting
5th Edition
ISBN: 9781618531650
Author: Thomas Dyckman
Publisher: Cambridge Business Publishers
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 2, Problem 62P
a.
To determine
Identify the effects of the given transactions using the financial statements effects template.
b.
To determine
Prepare the income statement for the month ending June 2015.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Given below are the business transactions of Simba Enterprise, during the month of
November 2016:
2016
Transactions
November 5 Purchased goods worth RM4,500 from Abu on credit.
8 Credit sales to Sara worth RM2,100.
9 Purchased furniture worth RM8,400 from Saga Perabot and paid
RM1,400 by cheque.
10 Received commission worth RM3,700 by cheque.
11 Simba took out RM550 goods for personal use.
12 Return inwards of RM620 from Sara because of damaged goods
15 Cash sales to Bismi worth RM6,900.
19 Received rent RM3,300 by cheque.
21 Returned damaged goods worth RM880 to Abu.
23 Paid insurance by cheque RM1,200.
25 Simba received a cheque from Aprilbank worth RM50,000 for a 3 years
10% term loan,
26 Simba brought in his own computer worth RM9,000 into the business.
29 Purchased stationery RM200 by cash for business use.
31 Paid interest on loan RM2,300 by cash.
Required:
State the effects (increase/decrease) on assets, liabilities, revenues, expenses or
owner' equity for the transactions dated…
Use the following accounts;
Foreign exchange gain
Foreign exchange loss
Сapital
Cash
Bank
Short-term investments
Loss on sale of short-term investment
Gain on sale of short-term investment
RA established his own company, r@ktas Co. The following transactions are the events that
occurred during December 2018, the company's first month:
Date
12/1
The owner invested $ 200,000 cash for capital.
12/5
r@ktas Co., opened deposit account on Don't Trust Bank and put 2.000 Euro
(Exchange rate was 1 Euro= 1,5 Dollar)
12/10
The Company purchased short-term investment with cash for $2,500.
12/18
The Company sold short-term investment with cash for $2.000
Note:
Exchange rate was 1 Euro= 1,4 Dollar at the end of the period.
Requirements:
1- Give the journal entry for each transaction.
2- Post each transaction to T accounts.
Given below are the business transactions of Simba Enterprise, during the month of
November 2016:
2016
November 5 Purchased goods worth RM4,500 from Abu on credit.
Transactions
8 Credit sales to Sara worth RM2,100.
9 Purchased furniture worth RM8,400 from Saga Perabot and paid
RM1,400 by cheque.
10 Received commission worth RM3,700 by cheque.
11 Simba took out RM550 goods for personal use.
12 Return inwards of RM620 from Sara because of damaged goods.
15 Cash sales to Bismi worth RM6,900.
19 Received rent RM3,300 by cheque.
21 Returned damaged goods worth RM880 to Abu.
23 Paid insurance by cheque RM1,200.
25 Simba received a cheque from Aprilbank worth RM50,000 for a 3 years
10% term loan.
26 Simba brought in his own computer worth RM9,000 into the business.
29 Purchased stationery RM200 by cash for business use.
31 Paid interest on loan RM2,300 by cash.
Required:
State the effects (increase/decrease) on assets, liabilities, revenues, expenses or
owner' equity for the transactions…
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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
- Read the instructions below and see the attached balance sheet of moon and star cooperation to support your answer. Moon Corporation and Star Corporation are in the same line of business and both were recently organized, so it may be assumed that the recorded costs for assets are close to current market values. The balance sheets for the two companies are as follows at July 31, 2011: Instructions a. Assume that you are a banker and that each company has applied to you for a 90-day loan of $12,000. Which would you consider to be the more favorable prospect? Explain your answer fully. b. Assume that you are an investor considering purchasing all the capital stock of one or both of the companies. For which business would you be willing to pay the higher price? Do you see any indication of a financial crisis that you might face shortly after buying either company? Explain your answer fully. (For either decision, additional information would be useful, but you are to reach your decision on…arrow_forward(Cash and Accrual Basis) On January 1, 2017, Norma Smith and Grant Wood formed a computer sales andservice company in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the following transactions during January. 1. Pays $6,000 in advance for 3 months’ rent of office, showroom, and repair space. 2. Purchases 40 personal computers at a cost of $1,500 each, 6 graphics computers at a cost of $2,500 each, and 25 printers ata cost of $300 each, paying cash upon delivery. 3. Sales, repair, and office employees earn $12,600 in salaries and wages during January, of which $3,000 was still payable at the end of January. 4. Sells 30 personal computers at $2,550 each, 4 graphics computers for $3,600 each, and 15 printers for $500 each; $75,000 is received in cash in January, and $23,400 is sold on a deferred payment basis. 5. Other operating expenses of $8,400 are incurred and paid for during January; $2,000 of incurred expenses are payable at January…arrow_forwardYou are to enter the following transactions in the books of PP Enterprise, post to accounts, balance off the accounts, extract a trial balance and prepare profit or loss statement and balance sheet as on July, 2016 1. Credit purchases from: K Hill £380; M Norman £500; N Senior £106,: R Morton £200; J Cook £180; D Edwards £410; C Davies £66. 2. Credit sales to: E Rigby £510; E Phillips £246; F Thompson £356, A Green £307; H George £250; J Ferguson £185. 3. Returns outwards to: M Norman £30; N Senior £16. 4. Returns inwards from: E Phillips £18; F Thompson £22. 5. Credit sales to: E Phillips £188; F Powell £310; E Lee £420 6. Credit purchases from: C Ferguson £550; K Ennevor £900. 7. Returns inwards from: E Phillips £27; E Rigby £30. 8. Returns outwards to: J Cook £13; C Davies £11. 9. Credit sales: T Thompson £56; L Rodriguez £148; K Barton £145. 10. Credit purchases: P Potter £144; H Harris £25; B Spencer £76, B Perkins £24; H Harris £58; H Miles £123 11. Credit sales: K Kelly £89; N…arrow_forward
- Ortel Telecom sells telecommunication products and services to a varietyof small businesses. Two of Ortel’s key clients are Square and Cloudburst, both fast-growing technology start-ups located in New York City. Ortel has compiled information regarding its transactions with Square and Cloudburst for 2017, as well as its expectations regarding their interactions over the next3 years: Ortel’s transactions with Square and Cloudburst are in cash. Assume that they occur at year-end. Ortel isheadquartered in the Cayman Islands and pays no income taxes. The owners of Ortel insist on a requiredrate of return of 12%.Q. Based on the net present value from cash flows over the next 3 years, is Cloudburst or Square a morevaluable customer for Ortel?arrow_forward. Ortel Telecom sells telecommunication products and services to a variety of small businesses. Two of Ortel’s key clients are Square and Cloudburst, both fast-growing technology start-ups located in New York City. Ortel has compiled information regarding its transactions with Square and Cloudburst for 2017, as well as its expectations regarding their interactions over the next 3 years: (in pic) Ortel’s transactions with Square and Cloudburst are in cash. Assume that they occur at year-end. Ortel is headquartered in the Cayman Islands and pays no income taxes. The owners of Ortel insist on a required rate of return of 12%. Q. Based on the net present value from cash flows over the next 3 years, is Cloudburst or Square a more valuable customer for Ortel?arrow_forwardOrtel Telecom sells telecommunication products and services to a varietyof small businesses. Two of Ortel’s key clients are Square and Cloudburst, both fast-growing technology start-ups located in New York City. Ortel has compiled information regarding its transactions with Square and Cloudburst for 2017, as well as its expectations regarding their interactions over the next3 years: Ortel’s transactions with Square and Cloudburst are in cash. Assume that they occur at year-end. Ortel isheadquartered in the Cayman Islands and pays no income taxes. The owners of Ortel insist on a requiredrate of return of 12%.Q. Cloudburst threatens to switch to another supplier unless Ortel gives a 10% price reduction on all salesstarting in 2018. Calculate the 3-year NPV of Cloudburst after incorporating the 10% discount. ShouldOrtel continue to transact with Cloudburst? What other factors should it consider before making itsfinal decision?arrow_forward
- Ortel Telecom sells telecommunication products and services to a varietyof small businesses. Two of Ortel’s key clients are Square and Cloudburst, both fast-growing technology start-ups located in New York City. Ortel has compiled information regarding its transactions with Square and Cloudburst for 2017, as well as its expectations regarding their interactions over the next3 years: Ortel’s transactions with Square and Cloudburst are in cash. Assume that they occur at year-end. Ortel isheadquartered in the Cayman Islands and pays no income taxes. The owners of Ortel insist on a requiredrate of return of 12%.Q. What is the expected net cash flow from Square and Cloudburst for the next 3 years?arrow_forwardOXia Company completes a local bank's loan application and applies for a six-month loan. 1. To evaluate whether Xia qualifies for the loan, the local bank will use the A) balance sheet to evaluate Xia Company's liquidity. B) balance sheet to evaluate Xia Company's return on assets. C) income statement to evaluate Xia Company's profitability. Dstatement of cash flows to evaluate Xia Company's solvency.arrow_forward. Ortel Telecom sells telecommunication products and services to a variety of small businesses. Two of Ortel’s key clients are Square and Cloudburst, both fast-growing technology start-ups located in New York City. Ortel has compiled information regarding its transactions with Square and Cloudburst for 2017, as well as its expectations regarding their interactions over the next 3 years: (in pic) Ortel’s transactions with Square and Cloudburst are in cash. Assume that they occur at year-end. Ortel is headquartered in the Cayman Islands and pays no income taxes. The owners of Ortel insist on a required rate of return of 12%. Q. What is the expected net cash flow from Square and Cloudburst for the next 3 yearsarrow_forward
- Caroline commenced business on 1 January 2016 trading as ‘Caroline’s kitchen Cabinets’ selling3-K Kitchen furniture. She had opened a business bank account on 15 December 2015, paying P25000 into it as her opening capital. On 21 December 2015, she rented premises, paying the firstquarter’s rent, due on 25 December 2015, P1 200. Other expenditure in the same month was forthe purchase of fixed assets for cash, P8 000, and inventory P20 000 which was bought on onemonth’s credit.Caroline Estimates that her other purchases and the sales for the year to 31 December 2016 willbe as follows:3 months to Purchases SalesBWP BWPMarch 31 12 000 15 000June 30 18 000 24 000September 30 21 000 30 000December 31 15 000 36 000- All purchases and sales will be on one month’s credit- Other expenditure in 2016 will be as follows:- January 5, purchase of motor van for cash P5 000, the van is to be depreciated annually atthe rate of 20% on cost- Wages of P2 000 per month paid currently - Caroline will draw…arrow_forwardPrepare the general journal entries for the following transactions. Mr. Laban Deyro opened his laundry business in Iloilo City on January 2, 2016. The following transactions occurred during the month of January 2016: DATE TRANSACTIONS 1/2/16 Invested PHP500,000 to his business. The trade name 1/3/16 Hired Allan and Allie who will manage his business 1/4/16 Collections from various customers for the day- PHP3,000 1/5/16 of the business was "MR. LABANDERO" Purchase store supplies from Labada Store - PHP10,000 1/7/16 Collections from various customers for the day - PHP8,000 1/8/16 MR. LABANDERO entered into an exclusive contract with Sikat Hotel where the business will do all the laundry of the hotel. 1/9/16 Sikat Hotel availed the services of MR. LABANDERO amounting to PHP15,000. Payment will be made on January 20, 2016. 1/10/16 Collections from various customers for the day- PHP12,000 1/12/16 Purchase a washing machine amounting to PHP50,000 1/15/16 Collections from various customers…arrow_forwardT-Lipot Enterprise is a business supplying fresh goat milk to supermarkets in Kuala Terengganu. Given below are the business transactions of T-Lipot Enterprise for the month of January 2018. Date January 2018 Transactions Raihan, the owner brought in RM100,000 cash and deposited the money into the business bank account. Purchased 1,000 bottles of fresh goat milk worth RM5,000 on credit from Kedai Abu Bakar. 12 Purchased a large freezer worth RM2,500 on credit from Seng Hek Sdn Bhd. 16 Sold 150 bottles worth RM3,000 of fresh goat milk to Mek Sue on credit. 19 Issued cheque to Kedai Abu Bakar of RM3,000. 21 Raihan withdraw RM 500 cash for his personal use. Mek Sue returned 20 bottles of fresh goat milk worth RM400 due to lack of freshness. 22 23 Received cheque of RM2,000 for the sales of 100 bottles of fresh goat milk. 25 Mek Sue paid the amount owed by cheque. Purchased 500 bottles of fresh goat milk from Zack Goatie on credit at a price of RM7,500 due to stock shortages. 26 31 Issued…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License