COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 3, Problem 1.5SRE
To determine
Explain that the fundamental
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I am assuming here some of the business transactions as below:
Aug 1
Business started with Capital
$ 100,000
Aug 5
Equipment purchased with cash
$ 20,000
Aug 10
Goods purchased on account
$ 20,000
Aug 15
Goods sold on cash
$ 25,000
Aug 20
Cash Paid for Goods purchased on 10 august
$ 20,000
Aug 25
Cash paid for Rent
$ 10,000
Aug 30
Salaries paid to staff
$ 10,000
now lets see impact on accounting Equation of above transactions.
Accounting Equation
Assets
=
Equity
+
Liability
Cash
+
Account receivables
+
Equipment
=
Capital
+
Retained earnings
+
Accounts payable
Aug-01
1,00,000
+
+
=
1,00,000
+
+
Aug-05
-20000
+
+
20,000
=
+
+
Aug-10
+
+
=
+
-20,000
+
20,000
Aug-15
25,000
+
+
=
+
25000
+
Aug-20
-20,000
+
+
=
+
+
-20000
Aug-25
-10,000
+
+
=
+
-10000
+
Aug-30
-10000
+
+
=
+
-10000
+
Total
65,000
+
0
20,000
=
1,00,000
-15,000…
Prepare balance sheet for this transaction.
Don Pedro’s Accounting Firm has the following account balances: Cash, P5,000; Accounts Receivable, P2,000; Prepaid Rent P1,500; Supplies, P850; Equipment, P6,000; Trucks, P15,000; Accounts Payable, P2,500; Common Stock, P20,000; Retained Earnings P7,850. Business transactions during August are presented as follows:
Company received cash from clients for services, P4,500
Don Pedro paid to creditors P500,
Paid office rent for the month of December, P750,
Company billed client for accounting services on account, P5,200
Supplies were purchased on account, P650,
Company received cash from clients billed previously, P6,000
Don Pedro received an invoice for office equipment repair services from Office Extra for December (the invoice will be paid next month), P850,
Don Pedro paid monthly salaries, P2,700,
Utilities expense were paid, P280
Miscellaneous expense were paid, P350,
Dividends were paid, P550.
Wolfpack Construction has the following account balances at the end of the year.Accounts Balances Equipment $26,000 Accounts payable 3,000 Salaries expense 33,000 Common stock 11,000 Land 18,000 Notes payable 20,000 Service revenue 39,000 Cash 6,000 Retained earnings ?Required: Use only the appropriate accounts to prepare a balance sheet.
Chapter 3 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 3 - Increases are recorded on which side of asset,...Ch. 3 - What is a footing?Ch. 3 - Prob. 1.3SRQCh. 3 - Prob. 1.4SRECh. 3 - Prob. 1.5SRECh. 3 - Prob. 1.6SRACh. 3 - Prob. 2.1SRQCh. 3 - Prob. 2.2SRQCh. 3 - What is a trial balance and what is its purpose?Ch. 3 - Prob. 2.4SRE
Ch. 3 - Prob. 2.5SRECh. 3 - Prob. 2.6SRACh. 3 - Prob. 1CSRCh. 3 - Prob. 2CSRCh. 3 - Prob. 3CSRCh. 3 - On which side of asset, liability, and owners...Ch. 3 - Prob. 5CSRCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Indicate whether each of the following types of...Ch. 3 - The terms debit and credit are often used in...Ch. 3 - Why is Prepaid Rent considered an asset account?Ch. 3 - Why is the modern system of accounting usually...Ch. 3 - Prob. 11DQCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Preparing a chart of accounts. The accounts that...Ch. 3 - Prob. 1PACh. 3 - Prob. 2PACh. 3 - Prob. 3PACh. 3 - Prob. 4PACh. 3 - The accountant for the firm owned by Randy Guttery...Ch. 3 - Prob. 1PBCh. 3 - Prob. 2PBCh. 3 - The following transactions took place at...Ch. 3 - Prob. 4PBCh. 3 - Prob. 5PBCh. 3 - Prob. 1CTPCh. 3 - Prob. 2CTPCh. 3 - In discussing a firms latest financial statements,...Ch. 3 - Prob. 2MFCh. 3 - Prob. 3MFCh. 3 - Prob. 4MFCh. 3 - Prob. 1EDCh. 3 - Prob. 1FSA
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