Effect of Transactions on Accounting Equation Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $19,202. Bought office supplies for $4,336: $1,911 in cash and $2,425 on account. Paid one-year insurance premium, $1,306. Earned revenues totaling $3,171: $1,134 in cash and $2,037 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,110. Paid office rent for the month, $668. Withdrew cash for personal use, $148. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital - Drawing + Revenues - Expenses). After transaction (g), report the totals for each element. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank. Assets = Liabilities + Owner's Equity (Items Owned) (Amts. Owed) (Owner's Investment) (Earnings) Cash + Accounts Receivable + Office Supplies + Prepaid Insurance = Accounts Payable + J. Pembroke, Capital - J. Pembroke, Drawing + Revenues - Expenses Description a. fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 b. fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18 c. fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27 d. fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36 e. fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 f. fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 g. fill in the blank 57 fill in the blank 58 fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 Bal. fill in the blank 66 fill in the blank 67 fill in the blank 68 fill in the blank 69 fill in the blank 70 fill in the blank 71 fill in the blank 72 fill in the blank 73 fill in the blank 74 Demonstrate that the accounting equation has remained in balance. Cash $fill in the blank 75 Accounts receivable fill in the blank 76 Office supplies fill in the blank 77 Prepaid insurance fill in the blank 78 Total Assets $fill in the blank 79 Accounts payable $fill in the blank 80 Jay Pembroke, capital fill in the blank 81 Jay Pembroke, drawing fill in the blank 82 Service fees fill in the blank 83 Rent expense fill in the blank 84 Total Liabilities and Owner's Equity $fill in the blank 85

Effect of Transactions on Accounting Equation Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $19,202. Bought office supplies for $4,336: $1,911 in cash and $2,425 on account. Paid one-year insurance premium, $1,306. Earned revenues totaling $3,171: $1,134 in cash and $2,037 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,110. Paid office rent for the month, $668. Withdrew cash for personal use, $148. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital - Drawing + Revenues - Expenses). After transaction (g), report the totals for each element. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank. Assets = Liabilities + Owner's Equity (Items Owned) (Amts. Owed) (Owner's Investment) (Earnings) Cash + Accounts Receivable + Office Supplies + Prepaid Insurance = Accounts Payable + J. Pembroke, Capital - J. Pembroke, Drawing + Revenues - Expenses Description a. fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 b. fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18 c. fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27 d. fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36 e. fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 f. fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 g. fill in the blank 57 fill in the blank 58 fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 Bal. fill in the blank 66 fill in the blank 67 fill in the blank 68 fill in the blank 69 fill in the blank 70 fill in the blank 71 fill in the blank 72 fill in the blank 73 fill in the blank 74 Demonstrate that the accounting equation has remained in balance. Cash $fill in the blank 75 Accounts receivable fill in the blank 76 Office supplies fill in the blank 77 Prepaid insurance fill in the blank 78 Total Assets $fill in the blank 79 Accounts payable $fill in the blank 80 Jay Pembroke, capital fill in the blank 81 Jay Pembroke, drawing fill in the blank 82 Service fees fill in the blank 83 Rent expense fill in the blank 84 Total Liabilities and Owner's Equity $fill in the blank 85

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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Question

Effect of Transactions on Accounting Equation

Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.

Invested cash in business, $19,202.
Bought office supplies for $4,336: $1,911 in cash and $2,425 on account.
Paid one-year insurance premium, $1,306.
Earned revenues totaling $3,171: $1,134 in cash and $2,037 on account.
Paid cash on account to the company that supplied the office supplies in transaction (b), $2,110.
Paid office rent for the month, $668.
Withdrew cash for personal use, $148.

Required:

Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital - Drawing + Revenues - Expenses). After transaction (g), report the totals for each element. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank.

Assets	=	Liabilities	+	Owner's Equity
(Items Owned)		(Amts. Owed)		(Owner's Investment)		(Earnings)
	Cash	+	Accounts Receivable	+	Office Supplies	+	Prepaid Insurance	=	Accounts Payable	+	J. Pembroke, Capital	-	J. Pembroke, Drawing	+	Revenues	-	Expenses	Description
a.	fill in the blank 1		fill in the blank 2		fill in the blank 3		fill in the blank 4		fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8		fill in the blank 9
b.	fill in the blank 10		fill in the blank 11		fill in the blank 12		fill in the blank 13		fill in the blank 14		fill in the blank 15		fill in the blank 16		fill in the blank 17		fill in the blank 18
c.	fill in the blank 19		fill in the blank 20		fill in the blank 21		fill in the blank 22		fill in the blank 23		fill in the blank 24		fill in the blank 25		fill in the blank 26		fill in the blank 27
d.	fill in the blank 28		fill in the blank 29		fill in the blank 30		fill in the blank 31		fill in the blank 32		fill in the blank 33		fill in the blank 34		fill in the blank 35		fill in the blank 36
e.	fill in the blank 38		fill in the blank 39		fill in the blank 40		fill in the blank 41		fill in the blank 42		fill in the blank 43		fill in the blank 44		fill in the blank 45		fill in the blank 46
f.	fill in the blank 47		fill in the blank 48		fill in the blank 49		fill in the blank 50		fill in the blank 51		fill in the blank 52		fill in the blank 53		fill in the blank 54		fill in the blank 55
g.	fill in the blank 57		fill in the blank 58		fill in the blank 59		fill in the blank 60		fill in the blank 61		fill in the blank 62		fill in the blank 63		fill in the blank 64		fill in the blank 65
Bal.	fill in the blank 66		fill in the blank 67		fill in the blank 68		fill in the blank 69		fill in the blank 70		fill in the blank 71		fill in the blank 72		fill in the blank 73		fill in the blank 74

Demonstrate that the accounting equation has remained in balance.

Cash	$fill in the blank 75
Accounts receivable	fill in the blank 76
Office supplies	fill in the blank 77
Prepaid insurance	fill in the blank 78
Total Assets	$fill in the blank 79

Accounts payable	$fill in the blank 80
Jay Pembroke, capital	fill in the blank 81
Jay Pembroke, drawing	fill in the blank 82
Service fees	fill in the blank 83
Rent expense	fill in the blank 84
Total Liabilities and Owner's Equity	$fill in the blank 85

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