FINANCIAL ACCOUNTING>IC<
15th Edition
ISBN: 9781119344988
Author: Kimmel
Publisher: WILEY C
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 3, Problem 3Q
Are the following events recorded in the accounting records? Explain your answer in each case.
- (a) A major stockholder of the company dies.
- (b) Supplies are purchased on account.
- (c) An employee is fired.
- (d) The company pays a cash dividend to its stock-holders.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Are the following events recorded in the accounting records? Explain your answer in each case.
A major shareholder of the company dies.
Supplies are purchased on account.
An employee is fired.
The company pays a cash dividend to its shareholders.
Are the following events recorded in the accounting records? Explain.
(a) The owner of the company dies. _________________________________________________
______________________________________________________________________________
(b) Supplies are purchased on account. ______________________________________________
______________________________________________________________________________
(c) An employee is fired. __________________________________________________________
______________________________________________________________________________
(d) The owner of the business withdraws cash from the business for personal use. ____________
______________________________________________________________________________
1. What are some examples of transactions that would need to be recorded or journalized? Can you provide an example of a transaction and the journal entry? Can you think of any events that where no entry would be recorded?
2. Are the following events recorded in the accounting records? Explain your answer in each case. (a) A major stockholder of the company dies. (b) Supplies are purchased on account. (c) An employee is fired. (d) The company pays a cash dividend to its stockholders.
3. What are the basic steps in the recording process? (a) When entering a transaction in the journal, should the debit or credit be written first? (b) Which should be indented, the debit or the credit? (c) Should accounting transaction debits and credits be recorded directly in the ledger accounts? (d) What are the advantages of first recording transactions in the journal and then posting to the ledger?
4. Accrual accounting is required under U.S. GAAP. One of the main principles of accrual…
Chapter 3 Solutions
FINANCIAL ACCOUNTING>IC<
Ch. 3 - Prob. 1QCh. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9QCh. 3 - What is the normal balance for each of these...
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 3.1BECh. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.9BECh. 3 - Selected transactions for Montes Company are...Ch. 3 - Prob. 3.11BECh. 3 - Prob. 3.12BECh. 3 - Prob. 3.1DIECh. 3 - Prob. 3.2DIECh. 3 - Prob. 3.3DIECh. 3 - Prob. 3.4DIECh. 3 - Prob. 3.5DIECh. 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. 3.10ECh. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Prob. 3.7APCh. 3 - Prob. 3.8APCh. 3 - Prob. 3.9APCh. 3 - Prob. 3.10APCh. 3 - Prob. 3.11APCh. 3 - Prob. 3.1EYCTCh. 3 - Prob. 3.2EYCTCh. 3 - Prob. 3.3EYCTCh. 3 - Prob. 3.4EYCTCh. 3 - Prob. 3.6EYCTCh. 3 - Prob. 3.7EYCTCh. 3 - Prob. 3.8EYCTCh. 3 - Prob. 3.9EYCTCh. 3 - Prob. 3.11EYCTCh. 3 - Prob. 3.1IFRS
Additional Business Textbook Solutions
Find more solutions based on key concepts
Account for mortgages. (LO 3). Curtain Company borrowed $10,000 at 9% for seven years. The loan requires annual...
Financial Accounting
Define costvolumeprofit analysis.
Cost Accounting (15th Edition)
Special order, activity-based costing. (CMA, adapted) The Reward One Company manufactures windows. Its manufact...
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year ...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (5th Edition)
P8-22A Correcting internal control weakness
Each of the following situations has an internal control weakness.
...
Horngren's Accounting (11th Edition)
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
- (c) Are the following events recorded in the accounting records? Explain your answer in each case. The owner of the company dies. Supplies are purchased on account. 3 An employee is fired. 4 The owner of the business withdraws cash from the business for personal use.arrow_forward1. Are the following events recorded in the accounting records? Do they have an affect on the basic accounting question? a. The owner of the company dies. b. Supplies are purchased on account c. An employee is fired. d. The owner of the business withdraws cash from the businesses for personal use. 2. Indicate how the following business transactions affect the basic accounting equation (what account increase and decrease) a. Paid cash janitorial services b. Purchased equipment for cash c. Invested cash in the business d. Paid accounts payable in full 3. Carla Enterprises had a capital balance of $182000 at the beginning of the period. At the end of the accounting period, the capital balance was $194000. Assuming no additional investment or withdrawals during the period, what is the net income for the period?arrow_forward,give your opinion from the financial accounting perspective. ( You may refer to an appropriate accounting principle.) .Assume a financial year from 1st January -31st Dec 2022. The accountant had deliberately not disclosed that the business had lost Kshs.500,000 following a robbery that took place during that year and that the money was not insured.arrow_forward
- Would the cash balance on the company's balance sheet increase by the amount paid to an employee if they no longer receive income from the company?arrow_forwardWhich of the following is not recorded as a business transaction of a sole trader who uese an accrual accounting system? A.Onwer wins the lottery and deposits winnings in the business bank account B.Onwer agrees to hire a job applicant to start next month on a salary of $50,000 p.a. C.Onwer performs work for a customer but will not receive cash until next month D.Owner uses cash from the business to pay for a holiday E.Onwer contributes cash to start the businessarrow_forwardThe four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and going concern. Consider the four independent situations below.1. Jumbo’s is a local restaurant. Due to a bad shipment of potatoes, several of the company’s customers become ill, and the company receives considerable bad publicity. Revenues are way down, several of its bills are past due, and the company is making plans to close the restaurant at the end of the month. The company continues to report its assets in the balance sheet at historical (original) cost.2. Gorloks Tax Services is owned and operated by Sam Martin. The company has the usual business assets: land, building, cash, equipment, and supplies. In addition, Sam decides to buy a boat for him and his family to enjoy on the weekends. Sam includes the boat as an asset in the balance sheet of Gorloks Tax Services.3. Claim Jumpers International, a U.S.-based company, has operations in the United States…arrow_forward
- Which of the following is false regarding the balance sheet? Group of answer choices The accounts shown on the balance sheet represent the basic accounting equation for a particular business entity The balance sheet reports the changes in specific account balances over a period of time The balance sheet reports the amount of assets, liabilities and stockholders’ equity as of a point in time. The retained earnings on the balance sheet must agree with the ending retained earnings balance shown on the statement of stockholders’ equityarrow_forwardWhich of the following is false regarding the balancesheet?a. The accounts shown on a balance sheet represent thebasic accounting equation for a particular business.b. The retained earnings balance shown on the balancesheet must agree with the ending retained earnings balance shown on the statement of retained earnings.c. The balance sheet summarizes the net changes in specific account balances over a period of time.d. The balance sheet reports the amount of assets, liabilities,and stockholders’ equity of a business at a point in time.arrow_forward16 - Which of the following is not an event that concerns the accounting of the company?A) Paying wages to employeesB) One of the cars buys a vehicleC) Purchasing commercial goodsD) Selling goods and services to customersE) Withdrawing cash loans from the bankarrow_forward
- There is a decrease in equity and decrease in asset in the business. Which transaction might have occurred? a. The owner withdrew cash from the business to buy a gift to his friend b. The owner purchased car to be used in the business c. The Owner received a gift from his friend d. The Owner paid the monthly salaried to the employees.arrow_forwardMCQS The amount of owners' equity in a business is not affected by: The percentage of total assets held in cash. The investments made in the business by the owner. The profitability of the business. The amount of dividends paid to stockholders MCQS A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger. True Falsearrow_forwardA company uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance? a. Assets increase and Stockholders' equity decrease b. Assets and Stockholders' equity decrease c. Stockholders' equity and liabilities decrease d. Assets and liabilities decreasearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles 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...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher: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
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
IAS 10 Events After the Reporting Period; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=ijYZlb1_ZyQ;License: Standard Youtube License