Pandey, Incorporated had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory note. B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000. C. Rented equipment at a cost of $10,000 per month and issued a check covering rent for six months. D. Provided $104,000 of services and billed customers. E. Purchased $30,000 of supplies on account. F. Received a utility bill for the current period in the amount of $1,200. G. Raised sales prices on 200 units from $400 per unit to $440 per unit. H. Received a 50% deposit from a customer on a $20,000 order to be filled next month. Required: Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (-) sign before each number to show its effect on the accounting equation. If the activity should not be recorded as a transaction, enter the word "None" in the first column for that activity. (Enter all amounts as positive values.) A B B C C D E F G H Account(s) Assets Amount Account(s) Liabilities Amount + Stockholders' Equity Account(s) Amount
Pandey, Incorporated had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory note. B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000. C. Rented equipment at a cost of $10,000 per month and issued a check covering rent for six months. D. Provided $104,000 of services and billed customers. E. Purchased $30,000 of supplies on account. F. Received a utility bill for the current period in the amount of $1,200. G. Raised sales prices on 200 units from $400 per unit to $440 per unit. H. Received a 50% deposit from a customer on a $20,000 order to be filled next month. Required: Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (-) sign before each number to show its effect on the accounting equation. If the activity should not be recorded as a transaction, enter the word "None" in the first column for that activity. (Enter all amounts as positive values.) A B B C C D E F G H Account(s) Assets Amount Account(s) Liabilities Amount + Stockholders' Equity Account(s) Amount
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 6P
Related questions
Question
how to fill in the boxes
Transcribed Image Text:Pandey, Incorporated had the following activities during the month:
A. Borrowed $7,000,000 cash, signing a promissory note.
B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000.
C. Rented equipment at a cost of $10,000 per month and issued a check covering rent for six months.
D. Provided $104,000 of services and billed customers.
E. Purchased $30,000 of supplies on account.
F. Received a utility bill for the current period in the amount of $1,200.
G. Raised sales prices on 200 units from $400 per unit to $440 per unit.
H. Received a 50% deposit from a customer on a $20,000 order to be filled next month.
Required:
Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by
completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (-) sign before each number to
show its effect on the accounting equation. If the activity should not be recorded as a transaction, enter the word "None" in the first
column for that activity. (Enter all amounts as positive values.)
A
B
B
C
C
D
E
F
G
H
Account(s)
Assets
Amount
Account(s)
Liabilities
Amount
+
Stockholders' Equity
Account(s)
Amount
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
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.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning