Atkins Company collected $1,750 as payment for the amount owed bya customer from services provided the prior month on credit. How doesthis transaction affect the accounting equation for Atkins?a. Assets would decrease by $1,750 and liabilities would decrease by$1,750.b. One asset would increase by $1,750 and a different asset woulddecrease by $1,750, causing no effect.c. Assets would increase by $1,750 and equity would increase by$1,750.d. Assets would increase by $1,750 and liabilities would increase by$1,750.e. Liabilities would decrease by $1,750 and equity would increase by$1,750.

Correct Answer:b. One asset would increase by $1,750 and a different asset would decrease by $1,750,…

Answered: Atkins Company collected $1,750 as…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 38E: Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on...

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Bleeker Street Bounty Work Sheet (partial) For the year ended December 31, 20-- Account Title Income Statement Balance Sheet 'Debit Credit Debit Credit Cash 12,300 Accounts Receivable 25,000 Merchandise Inventory 16,000 Store Supplies 1,100 Office Supplies 600 Prepaid Insurance 1,500 Store Equipment 66,000 Accumulated Depreciation-Store Equipment 38,000 Office Equipment 18,000 Accumulated Depreciation-Office Equipment 10,000 Accounts Payable 22,300 Salaries Payable 400 Long-Term Notes Payable 36,000 Carlo Perez, Capital 50,600 Carlo Perez, Drawing 32,000 Income Summary 17,000 16,000 Sales 61,500 Sales Returns and Allowances 500 Purchases 23,000 700 Purchases Returns and Allowances
If a company purchases equipment costing $4,700 on credit, the effect on the accounting equation would be: a. Assets increase $4,700 and liabilities decrease $4,700. b. Equity decrease $4,700 and liabilities increase $4,700. c. One asset increase $4,700 and another asset decrease $4,700. d. Assets increase $4,700 and liabilities increase $4,700. e. Equity increase $4,700 and is liabilities decrease $4,700.
Use additions and subtractions to show the dollar effects of each transaction on a. to e. below on the expanded accounting equation below. Intermediate balances are not required. a. The company completed consulting work for a client and immediately collected $5,500 cash. b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days. e. The company paid an assistant $1,400 cash as wages for the period. d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $700 cash for this period's cleaning services. Date Cash + Assets Accounts Receivable + Office Equipment = = Liabilities + Accounts + Payable Common Stock 4 Stockholders' Equity Dividends + Revenues Expenses
What is Greenfield 's Sales Revenue under the accrual basis of accounting on these general accounting question?
N1. Account
None
1. The following account balances were extracted from the accounting records of Macy Corporation at the end of the year:Accounts Receivable $1,100,000Allowance for Uncollectible Accounts (Credit) $37,000Uncollectible-Account Expense $63,000What is the net realizable value of the accounts receivable? Select one:A. $1,163,000B. $1,137,000C. $1,100,000D. $1,063,000 Please show all steps.
During its first year of operations, Yellow Bell Co. provided services to customers for the value of $76,000. At the end of the year, $16,000 of the $76,000 remained in Accounts Receivable. Yellow Bell Co. also incurred expenses of $47,000, of which, $7,000 is remained in Accounts Payable at year end. How much was Yellow Bell's net income assuming they used the accrual method of accounting?
Transaction: Laker Co. pays $3,900 on account for tools bought earlier. Required: For the transaction above, complete the following: (a) Select the accounts that are affected (there will be at least two). (b) Are the selected accounts increased or decreased? (c) What is the dollar amount of change in the accounts? (d) If Retained Earnings is selected, choose the reason that it has changed. Cash Account Accounts Receivable Supplies Tools Accounts Payable Capital Stock Which accounts are affected? Is the account increased or decreased? Increase Decrease OO Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease What is the amount of transaction? $0 $0 $0 $ 6A $0 Why has Retained Earnings changed?
Assuming the entity received a cash worth of 50,000, this 50,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is: a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service Revenue
10. ABC Co. received $1,000 in December for services it will perform in the following month. ABC uses the accrual basis of accounting. In December ABC debited Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)? Accounts Receivable (asset) Prepaid Services (asset) Service Revenues (revenue) Unearned Revenues (liability)
41)The total credits in the statement of financial position columns of a worksheet are P2,161,200, while the total debits in the income statement columns are P740,400. The total debits in the adjusted trial balance are P2,970,000. How much is the profit (loss) for the period? a. 68,400 b. 80,800 A company paid its property taxes on October 1 for the period October 1, year 1 to September 30, year 2 recorded using expense method. When the payment was made, the company debited property taxes expense and credited cash for P8,000. 42)The adjusting entry at December 31, year 1 would include which of the following: a. Dr. prepaid property taxes, P6,000. b. Cr. prepaid property taxes, P6,000. c. Cr. property tax expense, P2,000. d. Dr. property tax expense, P6,000. ABC Co. prepared its unadjusted trial balance and determined that the totals of debits and credits do not equal. Further investigation revealed the following: (a) The debit posting for a cash sale was omitted. (b) The balance of…

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