Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 7SC
RV Wholesale, Inc., paid $1,200 for supplies and purchased additional supplies on account for $1,000. RV Wholesale, Inc., also paid $200 of the accounts payable. What is the balance in the Supplies account?
- a. $1,200
- b. $1,000
- c. $2,400
- d. $2,200
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Alicia Tax Services paid $500 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction? a. Debit Office supplies, $500; credit Accounts payable, $500. b. Debit Cash, $500; credit Office supplies, $500. c. Debit Accounts payable, $500; credit Cash, $500. d. Debit Office supplies expense, $500; credit Cash, $500.
Purchased supplies on account for OMR 10,500.
June 6
Provided repair service to a customer, OMR 7,600. The customer paid OMR 3,000 and the remaining will be paid in the near future.
June 10
Paid the remaining amount of OMR 1500 for the Computers bought June 2nd.
June 15
Provided repair service to a customer on account, OMR 40,000.
June 16
Purchased Computer Equipment by cash, OMR 15,000
June 23
Received cash from the customer who was billed on June 15th, OMR 40,000.
June 24
Received cash from the customer who was billed on June 6th, OMR 4,600.
June 30
Paid the Internet bill OMR 450
June 30
Amer paid monthly rent, OMR 550.
June 30
Paid the Electricity bill, OMR 360
Give Accounting Equation for the following transactions of Jitesh:– Started business with cash $. 36,000– Paid rent in advance $. 800– Purchased goods for cash $.10,000 and on credit $. 4,000– Sold goods for cash $. 8,000– Rent paid $. 2000 and rent outstanding $. 400– Bought cycle for personal use $. 16,000– Purchased equipment's for cash $. 10,000– Paid to creditor$ $. 1,200– Some business expenses paid $. 1,800– Depreciation on equipment $. 2,000
Chapter 2 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 2 - The order in which assets were listed and...Ch. 2 - Prob. 2DQCh. 2 - How is revenue related to retained earnings?Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Distinguish between journalizing and posting.Ch. 2 - True or false: If the trial balance is in balance,...Ch. 2 - When it is time to prepare the financial...
Ch. 2 - Which sequence of actions correctly summarizes the...Ch. 2 - Prob. 2SCCh. 2 - Prob. 3SCCh. 2 - Prob. 4SCCh. 2 - Prob. 5SCCh. 2 - Which journal entry records obtaining a bank loan...Ch. 2 - RV Wholesale, Inc., paid 1,200 for supplies and...Ch. 2 - Prob. 8SCCh. 2 - Prob. 9SCCh. 2 - Prob. 10SCCh. 2 - Prob. 11SCCh. 2 - Prob. 12SCCh. 2 - Prob. 1SECh. 2 - Prob. 2SECh. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Accounting terminology (Learning Objectives 2, 3, ...Ch. 2 - Effects of debits and credits on accounts...Ch. 2 - Balancing accounts and normal balances (Learning...Ch. 2 - Types of accounts and effects of debits and...Ch. 2 - Re-creating journal entries from T-account...Ch. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Prob. 13SECh. 2 - Accounting terminology (Learning Objectives 1, 2,...Ch. 2 - Prob. 15AECh. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 17AECh. 2 - Balancing accounts and preparing a trial balance...Ch. 2 - Prob. 19AECh. 2 - Prob. 20AECh. 2 - Prob. 21AECh. 2 - Prob. 22AECh. 2 - Prob. 23BECh. 2 - Prob. 24BECh. 2 - Prob. 25BECh. 2 - Balancing accounts and preparing a trial balance...Ch. 2 - Recording transactions and preparing a trial...Ch. 2 - Prob. 28BECh. 2 - Prob. 29BECh. 2 - Prob. 30BECh. 2 - Prob. 31APCh. 2 - Prob. 32APCh. 2 - Journalizing, posting, and preparing a trial...Ch. 2 - Prob. 34APCh. 2 - Preparing a trial balance, income statement,...Ch. 2 - Prob. 36APCh. 2 - Prob. 37BPCh. 2 - Prob. 38BPCh. 2 - Prob. 39BPCh. 2 - Prob. 40BPCh. 2 - Prob. 41BPCh. 2 - Prob. 42BPCh. 2 - Prob. 1CECh. 2 - Prob. 1CPCh. 2 - Prob. 1CFSAPCh. 2 - Prob. 1EIACh. 2 - Prob. 2EIACh. 2 - Prob. 1FACh. 2 - Prob. 1IACh. 2 - Prob. 1SBACh. 2 - Prob. 1WC
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
- Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.arrow_forwardIn March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001. e. Sold services for cash for the first half of the month, 6,927. f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004. i. Received a bill for gas and oil for the truck, 218. j. Sold services on account, 3,603. k. Sold services for cash for the remainder of the month, 4,612. l. Paid wages to the employees, 3,958, Ck. Nos. 30053007. m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. Record the transactions and the balance after each transaction 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.arrow_forwardIn March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.arrow_forward
- Prepare journal entries to record the following transactions. A. March 1, purchased land for cash, $20,000 B. March 11, purchased merchandise inventory, on account, $18,500 C. March 15, Sold merchandise to customer for cash, $555arrow_forwardNido Co. has a standing agreement with a supplier for purchasing car parts. The terms of the agreement are 3/15, n/30 from the invoice date of September 1. The company makes a purchase on September 1 for $5,000 and pays the amount due on September 13. What amount does Nido Co. pay in cash on September 13? A. $5,000 B. $4,850 C. $150 D. $4,250arrow_forwardOn January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalarrow_forward
- As of November 5, Calexico had the following selected transactions Purchase of furniture on account: 24,000 Purchase of steel trash bin for cash: 1,800 Sales of merchandise for 40,000 less than 10 on terms 30% down and the balance 2/10 n/30 Paid for the repair of one air-conditioning unit: 3,280 Collected a customer's account: 15,880 How much was the total amount debited to Cash?arrow_forwardABC firm purchases an equipment of JD3,500, paid JD2,000 in cash and the rest is on account. The entry to record the transaction is Dr. Equipment 2,000 Cr. Account payable 2,000 Dr. Cash 2,000 Dr. Account payable 1,500 Cr. Equipment 3,500 Dr. Equipment 3,500 Dr. Cash 2,000 Cr. Accounts payable 1,500 Dr. Equipment 3,500 Cr. Cash 2,000 Cr. Account payable 1,500arrow_forwardThe following selected transactions were completed by Silverado Delivery Service during February:1. Received cash from owner as additional investment, $25,000.2. Purchased supplies for cash, $750.3. Paid rent for February, $3,000.4. Paid advertising expense, $1,500.5. Received cash for providing delivery services, $16,800.6. Billed customers for delivery services on account, $32,500.7. Paid creditors on account, $1,400.8. Received cash from customers on account, $23,770.9. Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month.10. Paid cash to owner for personal use, $5,000.Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a column and inserting at the right of each number the appropriate letter from the following list:a. Increase in an asset, decrease in another asset.b. Increase in an asset, increase in a liability.c. Increase in an asset,…arrow_forward
- The following selected transactions were completed by Silverado Delivery Service during February:1. Received cash from owner as additional investment, $25,000.2. Purchased supplies for cash, $750.3. Paid rent for February, $3,000.4. Paid advertising expense, $1,500.5. Received cash for providing delivery services, $16,800.6. Billed customers for delivery services on account, $32,500.7. Paid creditors on account, $1,400.8. Received cash from customers on account, $23,770.9. Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month.10. Paid cash to owner for personal use, $5,000.Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a column and inserting at the right of each number the appropriate letter from the following list:a. Increase in an asset, decrease in another asset.b. Increase in an asset, increase in a liability.c. Increase in an asset,…arrow_forwardSelica Financial purchased supplies for $1,400. It paid $400 in cash and agreed to pay the balance in 30 days. The accounts used to record this transaction would include a debit to an asset account for $1,400 and a credit to a liability account for $1,000. Which of the following would be the correct way to complete the recording of the transaction? O Debit the Drawings account for $400. O Credit an asset account for $400. O Credit another liability account for $400. O Credit the Capital account for $400 4arrow_forwardAminu Ltd started a delivery service, Aminu Ltd Deliveries, on June 1, 20X1. The following transactions occurred during the month of June.June 1 Aminu Ltd invested AED10,000 cash to start the delivery company.2 Purchased a used van for deliveries for AED12,000. Aminu Ltd paid AED2,000 cashand signed a note payable for the remaining balance.3 Paid AED500 for office rent for the month.5 Performed AED4,400 of services on account.9 Declared and paid AED200 in cash dividends. 12 Purchased supplies for AED150 on account.15 Received a cash payment of AED1,250 for services provided on June 5.17 Purchased gasoline for AED100 on account.20 Received a cash payment of AED1,500 for services provided.23 Made a cash payment of AED500 on the notes payable.26 Paid AED250 for utilities.29 Paid for the gasoline purchased on account on June 17.30 Paid AED1,000 for employee salariesRequired to:[a] Prepare an income statement for the month of June.[b] Prepare a statement of financial position at June 30,…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License