1. For items (a)-G), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.)
1. For items (a)-G), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Accounting Transactions Analysis Template
#### Instructions
For items (a)–(j), analyze the transaction to determine the effects on specific financial statement accounts and the overall accounting equation.
**Note:**
- Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.
- Do not round intermediate calculations.
#### Template for Analysis
| **Assets** | = | **Liabilities** | + | **Stockholders' Equity** |
|------------|---|-----------------|---|-------------------------|
| a. | | | | |
| b. | | | | |
| c. | | | | |
| d. | | | | |
| e. | | | | |
| f. | | | | |
| g. | | | | |
| h. | | | | |
| i. | | | | |
| j. | | | | |
This table is divided into three main columns corresponding to the fundamental accounting equation:
- **Assets:** This column is where you will enter changes related to assets.
- **Liabilities:** This column will track changes in liabilities.
- **Stockholders' Equity:** This column will reflect changes in stockholders' equity.
Use this template to systematically analyze individual transactions and determine their impact on the company's financial position. Each row (a–j) represents a separate transaction, which needs to be evaluated in terms of its effect on assets, liabilities, and stockholders' equity.
![**Required Information**
*[The following information applies to the questions displayed below.]*
Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts receivable method. The company entered into the following partial list of transactions during the first quarter.
a. During January, the company provided services for $44,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $22,000 of accounts receivable.
d. On February 15, the company wrote off a $150 account receivable.
e. During February, the company provided services for $34,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $150 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,240.
Below is the summarized aging analysis of accounts receivable:
| Customer | Total | 0–30 | 31–60 | 61–90 | Over 90 |
|-----------------------|--------|-------|-------|-------|---------|
| Alabama Tourism | $230 | $110 | $90 | $30 | |
| Bayside Bungalows | $440 | | | | $440 |
| Others (not shown to save space) | $18,000 | $7,200 | $8,800 | $1,100 | $900 |
| Xciting Xursions | $390 | | | | $390 |
| **Total Accounts Receivable** | **$19,060** | **$7,770** | **$8,890** | **$1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ad87420-52d2-4e34-815e-eb9bcb5c95c0%2Fece0f602-176b-45c3-afd2-4b36579ec4e2%2Fssrlahf_processed.png&w=3840&q=75)
Transcribed Image Text:**Required Information**
*[The following information applies to the questions displayed below.]*
Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts receivable method. The company entered into the following partial list of transactions during the first quarter.
a. During January, the company provided services for $44,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $22,000 of accounts receivable.
d. On February 15, the company wrote off a $150 account receivable.
e. During February, the company provided services for $34,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $150 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,240.
Below is the summarized aging analysis of accounts receivable:
| Customer | Total | 0–30 | 31–60 | 61–90 | Over 90 |
|-----------------------|--------|-------|-------|-------|---------|
| Alabama Tourism | $230 | $110 | $90 | $30 | |
| Bayside Bungalows | $440 | | | | $440 |
| Others (not shown to save space) | $18,000 | $7,200 | $8,800 | $1,100 | $900 |
| Xciting Xursions | $390 | | | | $390 |
| **Total Accounts Receivable** | **$19,060** | **$7,770** | **$8,890** | **$1
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