Activity 4: Directions: For each transaction, tell whether the assets, liabilities, anco equity will increase (+), decrease (-), or are not affected (ne). Write your answer in your activity notebook. A 1. The owner invest equipment in the business. 2. The company receives cash from a bank loan. 3. The company repays the bank loan. 4. The company purchases furniture on cash basis. 5. The company purchase land on account. 6. The company sales on account. 7. The company pays electric bill on cash 8. The company purchase supplies on account. 9. The company repays the supplies. 10. The owner withdraw cash for personal use. 2022.02.18 11:35

Activity 4: Directions: For each transaction, tell whether the assets, liabilities, anco equity will increase (+), decrease (-), or are not affected (ne). Write your answer in your activity notebook. A 1. The owner invest equipment in the business. 2. The company receives cash from a bank loan. 3. The company repays the bank loan. 4. The company purchases furniture on cash basis. 5. The company purchase land on account. 6. The company sales on account. 7. The company pays electric bill on cash 8. The company purchase supplies on account. 9. The company repays the supplies. 10. The owner withdraw cash for personal use. 2022.02.18 11:35

Name: Grade/Section:Activity 4:Directions: For each transaction, tell wheth
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Description: Grade/Section:Activity 4:Directions: For each transaction, tell whether the assets, liabilities, andequity will increase (+), decrease (-), or are not affected (ne). Write youranswer in your activity notebook.AL.1. The owner invest equipment in the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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when the owner withdraws cash from his business, what would be the entry Ono entry O debit owners withdrawal, credit cash O debit cash, credit owners withdrawal debit owners withdrawal, credit ownen equity what is the ent
The business purchased Supplies on account. Which of the following Journal entry is Correct ? O a. Debit Expense and credit Accounts Payable. Ob Debit Supplies and credit Cash. Debit Supplies and credit Accounts Payable. d. Debit Expense and credit Cash.
Which of the following items are expenses? I. Paying for next accounting period’s rent II. Buying inventory in cash III. Paying unpaid wages, which relate to work completed in the previous accounting period IV. Purchasing a building in cash V. Paying off a bank loan Select one: a. None of I - V are expenses. b. All of I - V are expenses. c. I, II, III d. II and IV e. I, II, III, IV f. I and III
4. Categorize each of the following as an operating activity (O), financing activity (F), or investing activity (1): a. Paying wages b. Repaying loans Selling land Selling goods Borrowing money Selling an old, used machine Paying rent Buying a building Paying dividends ن C. d. e. f. g. h. i. j. k. 1. Collecting cash from customers Buying a machine Selling an old building
Explain and show through the balance sheet structure changes how the following transactions affect the money supply (M1): Transaction 1: The initial Loan from the FN Bank is taken by Mark who buys a car from a dealer. Use the balance sheet (T-accounts) to present the effects of this transaction on Mark and the car dealer, assuming that the dealer keeps money in the Second National Bank. How this transaction affects M1? Transaction 2: Assume that another guy, Jack, comes to the Second National Bank and takes the loan in the amount available. He wants to buy machinery for construction (Bulldozer) from the Caterpillar factory. Use the balance sheet (T-accounts) to present the effects of this transaction on Jack and the Caterpillar factory, assuming that the factory keeps money in the Third National Bank. How this transaction affects M1? Does this process stop eventually? Provide an intuition (and calculate) with respect how much money will be created out of the initial deposit ($400).
Use the Following signs for each transaction under the relevant item 1. + The item is increased due to the transaction. 2. - The item is decreased due to the transaction. 3. +/- One item is increased and another is decreased due to the transaction. Table 1 S. No Transaction Assets Liabilities Equity 1 Investment made by the owner Equipment purchased on account Office equipment purchased with cash A bank loan was received in cash by the firm Equipment Sold More Equipment were purchased with Cash The loan lent by the bank was repaid by the firm Cash Withdrawals by the owner Cash received from an account customer 2 4 5 7 8. 9 10 Purchased Land, paid half in cash and half on credit
Case Study
Which business transactions would result in the following journal entry Dr. Supplies Cr. Accounts Payable a. Proprietor Withdrew cash from the business for his personal use. b. Purchased supplies by cash. c. Received supplies from the customer for whom services were provided on credit. d. Purchased supplies on account.
Subject: principle of accounting Question No 2 Assume that you are going to start a Business after graduation. Describe 10 transactions that the business might undertake by using your own idea with the following assumptions: Started business with cash Goods purchase for cash Goods purchased on credit Any asset purchased and paid cash  Any asset purchase on credit Sold goods for cash Sold goods on credit Paid any bill Paid salary to staff Cash withdraw from business for personal use Cash withdraw from business for personal use Based on your own 10 transactions, prepare: 1: Accounting Equation 2. Trail Balance 3. Financial statement
An entrepreneur purchases advertising on credit. What is the effect on the financial statements? Question 9 options: Expenses decrease and accounts payable increase. Expenses increase and accounts payable decrease. Expenses decrease and accounts payable decrease. Expenses increase and accounts payable increase.
Identify the effects on accounts. Example: Purchase of Equipment Answer: Equipment - Increase, Cash - Decrease 1. Payment of accounts payable 2. Cash drawings of the business owner 3. Payment of advanced rent 4. Payment of supplies expense 5. Obtaining a loan
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