![GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260087376/9781260087376_smallCoverImage.gif)
GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
4th Edition
ISBN: 9781260087376
Author: M. David Haddock Jr. Professor
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3, Problem 1PA
To determine
Identify the transactions affecting the owner's equity account directly.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Analyze the following transactions using the T account approach. Place the dollar amounts on the debit and credit sides. Indicate next to each entry the number for that transaction. After all transactions have been recorded, foot the accounts where necessary and enter the balance in the proper place for each account.
1.
Nick Bowman invested cash of $12,000 in the business.
2.
Received and paid utility bill of $125.
3.
Bought $300 of supplies on account.
4.
Sold services worth $2,500 to customers on account.
5.
Received cash payment of $800 from credit customers.
Directions: Record the transactions directly into the T-accounts. The transactions
are independent from one another. Write your answers on a separate
sheet of paper.
Use the following account titles:
Cash
Owner's Withdrawals
Professional Fees
Salaries Expense
Rent Expense
Utilities Expense
Miscellaneous Expense
Accounts Receivable
Office Equipment
Office Furniture
Accounts Payable
Owner's Capital
a. The owner deposited P280,000 in the name of his business.
b. He purchased a 4-in-1 equipment from Limay Equipment for P4,950, paying
P1,000 in cash and the balance on account.
He bought chairs and tables for the office for P12,300 cash.
с.
d. He purchased furniture from Orion Company for P2,750 in cash.
He received and paid the telephone bill from Ph Telecom amounting to P1,080.
е.
15
A number of business transaction carried out by smalling manufacturing company are as follows
Borrowed money from a bank
Sold land for cash at a price equal to its cost
Paid a liability
Purchases a computer on credit
The owner invested cash in the business
Purchase office equipment on cash
Collected an account receivable
Indicate the effects of each these transaction on the total amount of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the following column heading and the code letter I for increase D for decrease and NE for no effect the answer for transaction a is provided as an example
Transaction Assets = liabilities + owner’s equity
I = I
Chapter 3 Solutions
GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
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
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
- Windsor, Inc. had the following transactions. 1. Borrowed $ 6,184 from the bank by signing a note. 2. Paid $ 3,092 cash for a computer. 3. Purchased $ 557 of supplies on account. (a) Indicate what accounts are increased and decreased by each transaction. Debit Analysis Account Names Credit Analysis Account Names 1. select an effect on a basic account type enter a debit account title to record the first transaction select an effect on a basic account type enter a credit account title to record the first transaction 2. select an effect on a basic account type enter a debit account title to record the second transaction select an effect on a basic account type enter a credit account title to record the second transaction 3. select an effect on a basic account type enter a debit account title to record the third transaction select an effect on a basic…arrow_forwardBridgeport Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by Bridgeport Delivery Service during February:1. Received cash from owner as additional investment, $40,000.2. Billed customers for delivery services on account, $13,750.3. Paid creditors on account, $2,500.4. Received cash from customers on account, $9,000.5. Paid cash to owner for personal use, $1,000.Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner’s Equity, Drawing, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows:(1) Asset (Cash) increases by $40,000; Owner’s Equity (Jerome Foley, Capital) increases by $40,000.arrow_forwardn 1. Enter the following transactions in T accounts. Label each debit and credit with the letter identifying the transaction. Prepare a trial balance at June 30. On June 8, Lynne Jones opened a bank account in the name of her new business, Bluegrass company, by making a bank deposit of $82,000 cash. On June 12, Purchase a small office building located on a large lot for a total price of $91,200, of which $48,000 was applicable to the land and $43,200 to the building. A cash payment of $18,240 was made and a note payable was issued for the balance of the purchase price. On June 14, office equipment was purchased at a cost of $7,100. A cash down payment of $1,100 was made, and it was agreed that the balance should be paid within 30 days. On June 20, withdrew $1,100 cash from the business for personal use. On June 25, paid $450 for publication of newspaper advertising. On June 26, paid salaries $6,500 to employees for services rendered.arrow_forward
- Pina Colada Corp. had the following transactions. 1. Borrowed $5,065 from the bank by signing a note. 2. Paid $2,533 cash for a computer. 3. Purchased $456 of supplies on account. (a) Indicate what accounts are increased and decreased by each transaction. Debit Analysis Account Names Credit Analysis Account Names 1. select an effect on a basic account type enter a debit account title to record the first transaction select an effect on a basic account type enter a credit account title to record the first transaction 2. select an effect on a basic account type enter a debit account title to record the second transaction select an effect on a basic account type…arrow_forwardQuestion Directions: Record the transactions directly into the T-accounts. The transactions are independent of one another. Use the following account titles: Cash Owner’s Withdrawals Accounts Receivable Professional Fees Office Equipment Salaries Expense Office Furniture Rent Expense Accounts Payable Utility Expense Owner’s Capital Miscellaneous Expense a. The owner deposited P280,000 in the name of his business. b. He purchased 4-in-1 equipment from Limay Equipment for P4,950, paying P1,000 in cash and the balance on the account. c. He bought chairs and tables for the office for P12,300 cash. d. He purchased furniture from Orion Company for P2,750 in cash. e. He received and paid the telephone bill from Ph Telecom amounting to P1,080. f. He billed his customers P12,940 for services on account. g. He paid P1,850 for the electric bill from BEBECO. h. He paid P3,500 for the membership fee. i. He received P17,650 in cash for services rendered. j. He paid P1,000 to partially…arrow_forwardThe following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T accounts. Transactions: 1. Hunter Thompson, an owner, made an additional investment of $25,000 in cash. 2. A firm purchased equipment for $8,200 in cash. 3. A firm sold some surplus office furniture for $2,100 in cash. 4. A firm purchased a computer for $1,900, to be paid in 60 days. 5. A firm purchased office equipment for $9,400 on credit. The amount is due in 60 days. 6. Nancy Fowler, owner of Fowler Travel Agency, withdrew $4,200 of her original cash investment. 7. A firm bought a delivery truck for $41,000 on credit; payment is due in 90 days. 8. A firm issued a check for $1,700 to a supplier in partial payment of an open account balance. I need help to know why my answers are not complete.arrow_forward
- Record the transactions directly into the T-accounts. The transactions areindependent from one another. 1. The owner deposited P280,000 in the name of his business.2. He purchased a 4-in-1 equipment from 4-way Equipment for P4,950, paying P1,000in cash and the balance on account.3. He received and paid the telephone bill from Ph Telecom amounting to P1,080.4. He billed his customers P12,940 for services on account5. He paid P1,850 the electric bill from BEBECO.6. He paid P3,500 for the membership fee.7. He received P17,650 in cash for services rendered.8. He paid P1,000 to partially settle accounts with Orion Company.9. He paid P8,400 for the monthly rental of the place.10. He paid P3,500 for the salaries of employees.arrow_forwardDiscuss how each of the following transactions will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. A company purchased $450 worth of office supplies on credit. B. The company parking lot was plowed after a blizzard. A check for $75 was given to the plow truck operator. C. $250 was paid on account. D. A customer paid $350 on account. E. Provided services for a customer, $500. The customer asked to be billed.arrow_forwardAnalyzing 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_forward
- A number of business transactions carried out by Green River Frame are shown below: The owner invested cash in the business. Purchased a computer on credit Purchased office equipment for cash. Purchased small office building for cash and credit both. Collected notes receivables. Sold land for cash at a price equal to its cost. Borrowed money from bank. Paid a lability. Received cash from computer store. Owner’s drawing. Instructions: Indicate the effects of each of these transactions upon the total amounts of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the column headings shown below and the code letters I for increase, D for decrease and NE for no effect.arrow_forwardII. Computational. Look for the balances of the different accounts using the following transactions: A) Invested P50,000 in the business. B) Bought supplies on account amounting to P9,850. C) Received 7,500 cash from clients on account. D) Billed a client for the service rendered P6,000. E) Hired an assistant at a salary of P7,000 per month. Look for the ending of cash. Look for the ending balanceofcash.arrow_forwardConsider the following transactions for Julianne Corporation: a. Issue common stock for $15,000. b. Purchase equipment for $11,400 cash. c. Pay employees' salaries of $3,800. d. Provide services to customers for $6,800 cash. 1. Post the beginning Cash balance of $4,000 and then post the above transactions. 2. Calculate the ending balance of the Cash account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post these transactions to the Cash T-account. Assume the balance of Cash before these transac Beginning Balance Debit Cash Creditarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License