COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
16th Edition
ISBN: 9781264624256
Author: Haddock
Publisher: MCG
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Chapter 3, Problem 1PA
To determine
Identify the transactions affecting the owner's equity account directly.
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Using T accounts to record transactions involving assets,
liabilities, and owner's equity.
The following transactions occurred at several different businesses and are not related.
INSTRUCTIONS
Analyze each of the transactions. For each transaction, set up T accounts. Record the effects of the
transaction in the T accounts. Use plus and minus signs to show the increases and decreases
TRANSACTIONS
1.
A firm purchased equipment for $16.000 in cash.
2. The owner. Ana Rodriguez, withdrew $4.000 cash.
3. A firm sold a piece of surplus equipment for $3,000 in cash.
4.
A firm purchased a used delivery truck for $12,000 in cash.
5.
A firm paid $3,600 in cash to apply against an account owed.
6.
A firm purchased office equipment for $5,000. The amount is to be paid in 60 days.
7. Kelvin Newton, owner of the company, made an additional investment of $20,000 in cash.
8.
A firm paid $1,500 by check for office equipment that it had previously purchased on credit.
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Problem 3.18…
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.
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
COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
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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