Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3, Problem 3.17MCE
To determine
Concept Introduction:
Journal entries are part of basic accounting or primary system of accounting. In journal entries there are two aspects one is debit and another is credit. These two aspects are always equal. Journal entries are base on the ledger and
To Prepare:
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Prepare general journal entries for the following transactions of Sustain Company. Use the following (partial) chart of accounts: Cash; Prepaid Insurance; Accounts Receivable; Furniture; Accounts Payable; Unearned Revenue; Fees Earned; and T. James, Capital. June 1 T. James, owner, invested $11,000 cash in Sustain Company. 2 The company purchased $4,000 of furniture made from reclaimed wood on credit. 3 The company paid $600 cash for a 12-month insurance policy on the reclaimed furniture. 4 The company billed a customer $3,000 in fees earned from preparing a sustainability report. 12 The company paid $4,000 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,000 cash for fees billed on June 4. 21 T. James invested an additional $10,000 cash in Sustain Company. 30 The company received $5,000 cash from a client for sustainability services for the next 3 months.
Create an income statement from the following transactions from the books of Arts and Styles. The owner wants to see the result of its operation after a month of existence December, 2020.
December 1 Chon Loo invested 1,500,000 and equipment worth 500,000.
3 Paid Permits and licenses to operate 12,000.
5 Bought tables, chairs, on account from SM Malls, 250,000.
8 Rendered services for cash worth 50,000.
9 Rendered services on account with a promissory note from Aces worth 30,000.
10 Bought canvas and paints worth 20,000.
15 Paid salaries of artist for 6 months, worth 300,000.
20 The owner withdraw 10,000 for personal use.
25 Borrowed money from Metro Bank 1,000,000 giving a promissory payable in a year with
Interest of 8% per annum.
27 Collected from Aces ½ of…
Create an income statement from the following transactions from the books of Arts and Styles. The owner wants to see the result of its operation after a month of existence December, 2020.
December 1 Chon Loo invested 1,500,000 and equipment worth 500,000.
3 Paid Permits and licenses to operate 12,000.
5 Bought tables, chairs, on account from SM Malls, 250,000.
8 Rendered services for cash worth 50,000.
9 Rendered services on account with a promissory note from Aces worth 30,000.
10 Bought canvas and paints worth 20,000.
15 Paid salaries of artist for 6 months, worth 300,000.
20 The owner withdraw 10,000 for personal use.
25 Borrowed money from Metro Bank 1,000,000 giving a promissory payable in a year with
Interest of 8% per annum.
27 Collected from Aces ½ of…
Chapter 3 Solutions
Using Financial Accounting Information
Ch. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10E
Ch. 3 - Prob. 3.11MCECh. 3 - Prob. 3.12MCECh. 3 - Prob. 3.13MCECh. 3 - Prob. 3.14MCECh. 3 - Prob. 3.15MCECh. 3 - Prob. 3.16MCECh. 3 - Prob. 3.17MCECh. 3 - Prob. 3.18MCECh. 3 - Prob. 3.1PCh. 3 - Prob. 3.2.1PCh. 3 - Prob. 3.2.2PCh. 3 - Prob. 3.2.3PCh. 3 - Prob. 3.2.4PCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.2PCh. 3 - Prob. 3.3.3PCh. 3 - Prob. 3.3.4PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5.1MCPCh. 3 - Prob. 3.5.2MCPCh. 3 - Prob. 3.5.3MCPCh. 3 - Prob. 3.6.1MCPCh. 3 - Transaction Analysis and Financial Statements Blue...Ch. 3 - Prob. 3.6.3MCPCh. 3 - Prob. 3.6.4MCPCh. 3 - Prob. 3.7.1MCPCh. 3 - Prob. 3.7.2MCPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.8MCPCh. 3 - Prob. 3.9.1MCPCh. 3 - Problem 3-9 Transaction Analysis and Journal...Ch. 3 - Prob. 3.10.1MCPCh. 3 - Prob. 3.10.2MCPCh. 3 - Prob. 3.10.3MCPCh. 3 - Prob. 3.10.4MCPCh. 3 - Prob. 3.11MCPCh. 3 - Prob. 3.12.1MCPCh. 3 - Prob. 3.12.2MCPCh. 3 - Prob. 3.13.1MCPCh. 3 - Prob. 3.13.2MCPCh. 3 - Prob. 3.14.1MCPCh. 3 - Prob. 3.14.2MCPCh. 3 - Prob. 3.14.3MCPCh. 3 - Prob. 3.14.4MCPCh. 3 - Prob. 3.14.5MCPCh. 3 - Prob. 3.15.1MCPCh. 3 - Prob. 3.15.2MCPCh. 3 - Prob. 3.15.3MCPCh. 3 - Prob. 3.15.4MCPCh. 3 - Prob. 3.1AAPCh. 3 - Prob. 3.2.1AAPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.1AAPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.4AAPCh. 3 - Prob. 3.4AAPCh. 3 - Prob. 3.5.1AAMCPCh. 3 - Prob. 3.5.2AAMCPCh. 3 - Prob. 3.5.3AAMCPCh. 3 - Prob. 3.6.1AAMCPCh. 3 - Prob. 3.6.2AAMCPCh. 3 - Prob. 3.7.1AAMCPCh. 3 - Prob. 3.7.2AAMCPCh. 3 - Prob. 3.8AAMCPCh. 3 - Prob. 3.9.1AAMCPCh. 3 - Prob. 3.9.2AAMCPCh. 3 - Prob. 3.10.1AAMCPCh. 3 - Prob. 3.10.2AAMCPCh. 3 - Prob. 3.10.3AAMCPCh. 3 - Prob. 3.10.4AAMCPCh. 3 - Prob. 3.11AAMCPCh. 3 - Prob. 3.12.1AAMCPCh. 3 - Prob. 3.12.2AAMCPCh. 3 - Prob. 3.13.1AAMCPCh. 3 - Prob. 3.13.2AAMCPCh. 3 - Prob. 3.14.1AAMCPCh. 3 - Prob. 3.14.2AAMCPCh. 3 - Prob. 3.15.1AAMCPCh. 3 - Prob. 3.15.2AAMCP
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
- Journal Entries Recorded Directly in T Accounts Record each of the following transactions directly in T accounts using the numbers preceding the transactions to identify them in the accounts. Each account needs a separate T account. Received contribution of $6,500 from each of the three principal owners of We-Go Delivery Service in exchange for shares of stock. Purchased office supplies for cash of $130. Purchased a van for $15,000 on an open account. The company has 25 days to pay for the van. Provided delivery services to residential customers for cash of $125. Billed a local business $200 for delivery services. The customer is to pay the bill within 15 days. Paid the amount due on the van. Received the amount due from the local business billed in (5).arrow_forwardJournalize each of the following transactions or state no entry required and explain why. Be sure to follow proper journal writing rules. A. A company is started with an investment of a machine worth $40,000. Common stock is received in exchange. B. Office furniture is ordered. The furniture worth $7,850 will be delivered in one week. The payment will be due forty-five days after delivery. C. An advertisement was run in the newspaper at a total cost of $250. Cash was paid when the order was placed. D. The office furniture is delivered. E. Services are performed for a client. The client was billed for $535.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_forward
- Journalize for Harper and Co. each of the following transactions or state no entry required and explain why. Be sure to follow proper journal writing rules. A. A corporation is started with an investment of $50,000 in exchange for stock. B. Equipment worth $4,800 is ordered. C. Office supplies worth $750 are purchased on account. D. A part-time worker is hired. The employee will work 15–20 hours per week starting next Monday at a rate of $18 per hour. E. The equipment is received along with the invoice. Payment is due in three equal monthly installments, with the first payment due in sixty days.arrow_forwardBefore you begin this assignment, review the Tying It All Together feature in the chapter. Part of Fry’s Electronics, Inc.'s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations. Requirements Suppose Fry’s Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect? Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect? What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.arrow_forwardRequirement: Journalize the transactions using the ff. accounts: Cash; Accounts Receivable; Equipment; Furniture and Fixtures, Accounts Payable; L. Rosales, Capital; Delivery Revenue; Gas and Oil Expense; Advertising Expense, Rent Expense, Salaries Expenses. Record the journal entries in journal sheets in proper format. The transactions for March 2021 of Lightning Package Delivery Company, owned by Lelong Rosales, are as follow: March 1: Opened the company with initial investment of P536,000 Cash. March 2: Paid P6,000 rent for March on a completely furnished building. March 5: Paid cash for delivery trucks, P220,000. March 9: Paid P2,200 for supplies received. March 12: Performed delivery services for customers P27,000 on account. March 15: Invested additional cash P105,200 March 20: Collected cash of P14,500 from customers on account (see March 12 entry). March 21: Received a bill and paid for P1,200 for advertising in the local newspaper March 27: Paid…arrow_forward
- Requirement: Journalize the transactions using the ff: account: Cash: Accounts Receivable; Equipment; Furniture; Accounts Payable; Loans Payable; Maharlika, Capital; Maharlika, Withdrawal; Service Revenue; and Utilities Expense. Record the journal entries in a journal sheet in proper format. Maharlika decided to invest in a travel agency. Below are the transaction for the month of July 2021. July 1: Maharlika invested a car worth P750,000, cash of P1,400,000 and furniture worth P350,000 July 4: Borrowed P350,000 from Shey Bank July 5: Bought furniture from Fim’s P30,000 on account. July 6: Withdrew cash P100,000 for personal use July 15: Rendered services to Joyous Tours P500,000 on account July 21: Paid utilities for P10,000 July 24: Performed services, P25,000 July 27 Paid furniture previously acquired July 30: Collected account from Joyous Toursarrow_forwardQUESTIONS: Direction: Journalize the following transactions and post the accounts to the general ledger (Use T-accounts only). In September of the current year, Reno Mo began a business he called Furniture Repair Shop and completed the following transactions during the month: September 1 - Invested P300,000 to start the business. 2 - Paid P10,000 for the rent of the shop building. 3 - Purchased P80,000 of shop machinery, giving P30,000 cash and a promissory note in payment of the balance. 5 - Purchased P9,500 of shop supplies from R. Sonora on credit. 9 - Collected cash on delivery of a cabinet to a customer, P20,000. 13 - Completed and delivered sofa bed to J. Belmonte P13,000 on credit. 15 - Paid wages of shop helpers, P15,000. 15 - Paid the delivery services rendered by AKO TRUCKING, P8,000. 18 - Paid the account due to R. Sonora. 20 - Took P1,000 worth of shop supplies for use in his carport. 23 - Received P5,000 from J. Belmonte in partial payment of her account. 25 - Withdrew…arrow_forwardWrite the journal entries for each transaction. Post the totals for each account in the end- of- period spreadsheet Receive cash in exchange for common stock- $25000 Purchase supplies for cash- $250 Prepay insurance for the year- $1000 Purchase land for $50,000. Pay $10,000 cash and finance the rest Purchased a building for $75,000. Pay $10,000 cash and finance the rest. Paid advertising expense $50 Mow lawns for the week- $500- send bills to customers Mow lawns for the week and receive cash- $100 Paid salaries $150 Paid utilities $150 Purchase supplies on account $300 Collect from customers $250 Pay supplies on account bill- $150 Paid stockholder dividends $1000arrow_forward
- Open the following T accounts: Cash; Repair Supplies; Repair Equipment; Accounts Payable; D. Stan, Capital; D. Stan, Withdrawals; Repair Fees Earned; Salaries Expense; and Rent Expense. Record the following transactions for the month of June directly in the T accounts; use the letters to identify the transactions in your T accounts. Determine the balance in each account. a.Daniel Stan opened Stan Repair Service by investing $4,300 in cash and $1,600 in repair equipment. b.Paid $800 for the current month’s rent. c.Purchased repair supplies on credit, $1,100. d.Purchased additional repair equipment for cash, $600. e.Paid salary to an employee, $900. f.Paid $400 of amount purchased on credit in c. g.Accepted cash for repairs completed, $3,720. h.Withdrew $1,000 in cash.arrow_forwardThis problem is based on the transactions for the Take Wings Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Dec. 1 On December 1, John Fox forms a consulting business, named Take Wings. Take Wings receives $62,000 cash from John Fox as an owner contribution. Dec. 2 Take Wings pays $4,100 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Take Wings pays $46,000 cash for equipment. Dec. 4 Take Wings purchases $9,550 of supplies on credit from a supplier, CalTech Supply. Dec. 5 Take Wings provides consulting services and immediately collects $5,800 cash. Dec. 6 Take Wings pays $2,600 cash for December rent. Dec. 7 Take Wings pays $1,100 cash for employee salary. Dec. 8 Take Wings provides consulting services of $3,700…arrow_forwardTransaction Analysis Galle Inc. entered into the following transactions during January. Borrowed $50,000 from First Street Bank by signing a note payable. Purchased $25,000 of equipment for cash. Paid $500 to landlord for rent for January. Performed services for customers on account, $10,000. Collected $3,000 from customers for services performed in Transaction d. Paid salaries of $2,500 for the current month. Required: Show the effect of each transaction using the following model. If an amount box does not require an entry, leave the cells blank or enter zero ("0"). Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item, enter "0" since the net effect on the item is zero. Assets = Liabilities + Stockholders' Equity ContributedCapital + RetainedEarningsarrow_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 LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher: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
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License