This module is not for sale and is exclusive for LNU BSEN Students only18Exercise 2,2:Show the effect of each of the named transactions on the assets, liabilities, and owner'sequity of a business. Fill in each blank under a column and mark with + (Increase), -(decrease), or 0 (no change).OWNER'SEQUITYASSETSLIABILITIES1. Owner invested cash in the business.2. Purchased equipment on Credit.3. Borrowed money from the bank4. Rendered service in cash.5. Paid creditor (Transaction 2).6. Paid monthly rent.7. Rendered service to customer who will payat later dateExercise 2.3:Harry Potter Feedmill is owned by Harry Potter. Its assets, liabilities and owner's equity areas follows: Cash, Accounts receivable, equipment, Land, Accounts Payable, and Harry PotterCapital. Prepare a tabular form and indicate the effect of the following transactions to theitems on the equation by placing + (increase) or - (decrease) below the affected item.1. Owner invested cash in the feedmill.2. Purchased land in cash.3. Purchased equipment on credit.4. Performed services for cash customers.5. Paid mill fuel expense.6. Performed services for charge customers7. Paid equipment previously purchased (transaction 3).8. Received payment from charge customers (transaction 6).9. Withdrew cash for enrollment expenses of children.10. Paid salaries of workers.This module is not for sale and is exclusive for LNU BSEN Students only19Exercise 2.4:The business on delivery services had the following assets and liabilities at the beginning andthe end of the vear 12:38 > ?*0 65Acctg 10.21-2022)This module is not for sale and is exclusive for LNU BSEN Students only19Exercise 2.4:The business on delivery services had the following assets and liabilities at the beginning andthe end of the year:ASSETSLIABILITIESP 85,000.00 P 40,000.00January 1, 2020December 31, 2020105,000,0055,000.00Determine the net income or net loss of the business during the year. The followingassumptions are not related to each other.1. The owner did not make additional investment during the year.2. The owner had no additional investment during the year but had withdrawn P1,500 permonth for personal expenses.3. The owner had made no withdrawals but had an additional investment of P20,000.00during the year.4. The owner had withdrawn P1,500 from the business each month for personal expensesand invested P20,000 during the year.Exercise 2.5:Prepare a balance sheet and an income statement based on these data.Peter Parker opened a tailoring shop he called Spidy's Shoppe on August 1, 2021. After amonth of operation, his records reveal the following items and amounts. Peter Parker, Capitalof P9,000 as of August 31, 2021 is already a net amount after expenses have been deductedand revenues added to his original investment.CashAccounts ReceivablePrepaid RentSewing EquipmentAccounts PayablePeter Parker, CapitalTailors' Fees EarnedRent ExpenseSalary ExpenseTelephone ExpenseP1,500.00900.001,400.005,800.00600.009,000.006,800.001,200.001,600.00400.00This module is not for sale and is exclusive for LNU BSEN Students only20DODOToolsMobile ViewSharePDF to DOC Edit on PC3

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Answered: Excrcise 2.2: Show the effect of each…

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 52PSB

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Enrichment Activity Since it was already discussed the theory of debit and credit in the use of a T account and the effect on assets, liabilities, capital, income, and expenses, record the following transactions in their corresponding T account by answering the remaining transactions Number 1-3 is already done for you. Use 1 whole sheet of paper. 4. Rendered services to Lao Ay on account P3,000.00. 5. The owner withdraws P4,000.00 for his personal use. 6. Received P20,000.00 cash from the customer for services rendered. 7. Paid electricity bill P10,000.00
Identify the relevant transaction for this entry: Assets Owner’s equity Liabilities +R8000 +R8000 0 Received R8000 cash for debtors R8 000 cash paid for rent Cash sales of inventory R8 000 Received R8 000 cash for rent
A docs.google.com/forms choose the right answer Amount invested by the proprietor in the business should be credit to: Drawing O Capital O Cash O A/c payable O choose the right answer The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as Intangible assets O Investments Current assets Fixed assets O
Assuming the entity invested 500,000 to the business the effect of this transaction would have an increase in asset by debiting Cash worth 500,000 and crediting what account? a. Owner’s Drawing b. Owner’s Equity c. Owner’s Additional Investment d. Accounts Payable
Multiple choice: 1. Comprises the total assets of a business A. Income B. Revenue C. Gain D. Capital 2. "For every purchase worth 50.00 pesos you can buy umbrella for only 15.00 pesos" is what we call; A. Rebate B. Samples C. Premiums D. Contests
Q1. Complete the following into meaningful transactions . Solve them in basic accounting equation. Find the effect on Asset / Liabilities and Owner Equity and give the net result of the transactions. starts a business called enterprise on 1st January, 2021 and invests --as his /her capital. ------enterprise purchases machinery ---- paid 35% in cash and b) worth RO. remaining on credit. e) The enterprise purchased goods worth RO.---- -. Paid RO.----- cash and balance on credit. d) The business made a sale of RO. ----- (cost being RO -----) on credit basis. e) The business took loan of RO. from Bank Muscat. ) The owner withdrew RO.-- -----from the business for his/ her personal use. Q2. Select any ONE organization of your choice and name atleast 7 common assets that business would need and specify some common liabilities, expenses the business would incur and name the sources of revenue. Journalise any 6 transactions of your choice with imaginary names / transactions / omr Q3.
Identify the letter for the principle or assumption from A through F in the blank space next to each numberedsituation that it best explains or justifies.A. General accounting principleB. Measurement (cost) principleC. Business entity assumptionD. Revenue recognition principleE. Expense recognition (matching) principleF. Going-concern assumption If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.
Mon Mans decided to start her own small bus tour business, called Cascade Tours. She had the following ending balances after the first month of operations (September 2021). Ending Balances - September 30, 2021 Accounts Payable $500 Bus Bank Loan $35,000 $18,400 Capital Invested in September Cash $20,800 $10,100 Interest Expense Mans, Capital, September 1, 2021 Mans, Withdrawals Maintenance Expense Miscellaneous Expense Prepaid Insurance Salaries & Wages Expense $800 $900 $800 $600 $1,500 $800 $9,700 Service Revenue Unearned Revenue Utilities Expense $1,600 $500
Q1. Complete the following into meaningful transactions . Solve them in basic accounting equation. Find the effect on Asset / Liabilities and Owner Equity and give the net result of the transactions. а) starts a business called enterprise on 1st January, 2021 and invests ----as his /her capital. ----enterprise purchases machinery paid 35% in cash and b) worth RO. remaining on credit. c) The enterprise purchased goods worth RO.---- -. Paid RO.----- cash and balance on credit. d) The business made a sale of RO. (cost being RO ----) on credit basis. e) The business took loan of RO. from Bank Muscat . f) The owner withdrew RO.----- ----from the business for his/ her personal use.
21) Identify the effects of the following transactions on the asset, liability and owner's equity (Capital): eg: increase asset, increase liability, decrease capital....) item Transaction Effect a. Purchase a machine on credit b Sold vehicle by cheque C. Paid supplier by cash d. Withdraw cash by owner for personal use e. Received loan of cash from Alex f. Owner paid a creditor from his private funds Customer paid us by cheque g. h. Took $520 from bank and put in cash till i. Purchase lorry by cash j. Started business with $40,000 in bank account Bought van by cheque Sold some office equipment by cash Purchase inventory by credit Sold motor vehicle by credit Owner took inventory for own use Bought building $200,000 and paid cash $10,000 as deposit, balance by credit Paid loan by cheque Purchase computer terminals from DE on credit Received cash from customer Owner put in additional $10,000 cash into business Owner brought in a computer for office use k. 1. m. n. 0. P. 9. r. S. t. u.
Entity A enters into the following transactions. You are required to show the impact of the transactionsbelow on the accounting equation.1. In an attempt to assist the business, the owner of Entity A deposited R100 000 into the entity’sbank account. A quarter of the amount is payable to the owner and the rest is not.2. A client of Entity A who currently owes the company R23 000, purchased bricks to the value ofR45 000 and paid R35 000 to reduce his outstanding balance. Entity A purchased the bricks forR18 000.3. Entity A purchased 1 000 bags of cement from K Ltd on credit. K Ltd normally sells a bag for R45.Entity A received a 10% discount for the 1 000 bags.4. Entity A returned 150 bags of cement, as they were defective. On the same day, the outstandingbalance was settled through an online payment. This transaction did not affect the discountoffered to Entity A.
Q1. Mr. X has recorded good relations with his partners as an asset in the balance sheet? Is he violating anyaccounting principles? Why or why not support your answers with reasons?Q2. Javlon purchased a furniture for $10000 on credit? In books he passed an entry of Cash A/c debit toFurniture account credit $10000. Do you agree with the journal entry? If not tell the correct entry? Alsopass a rectification entry?Q3. On December 31, Javlon Company, a partnership between Fogg and Shelhon, realized a $66,000 netincome. According to the partnership agreement, the partners split the profits on a 3:2 basis. Determineeach partner’s split and the journal entries you will make to record the split of net income.

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