III. For each transaction listed below for 2022 and 2023: · Indicate the net effect of the transaction on: A (Assets), L (Liabilities), SE (Stockholders' Equity), and NI (Net Income). Use: + for increase, - for decrease, or 0 for no net effect. Support the above work with entries for transactions (without numbers). · Transactions: a) Collected customer's account (before had billed for services); no cash discount b) Bought equipment; gave down payment and long-term note for the rest c) Recorded depreciation on equipment d) Declared and paid dividends e) Issued company's own common stock at more than par value f) Sold merchandise on account (on credit) g) Recorded the cost of merchandise sold-use perpetual system h) Accrued estimated assurance warranty obligation i) Bought supplies on account (on credit) - used "real" (balance sheet) account j) Bought land by issuing own stock; included stockbroker fees k) Sold building at less than acquisition cost; received cash 1) Paid salaries: 1/4/23. Had accrued some salaries: 12/31/22. Fiscal year end: 12/31. m) Paid for previous credit purchase of merchandise after discount period n) Collected monies in advance for future services; used nominal (I/S) account A L SE NI

III. For each transaction listed below for 2022 and 2023: · Indicate the net effect of the transaction on: A (Assets), L (Liabilities), SE (Stockholders' Equity), and NI (Net Income). Use: + for increase, - for decrease, or 0 for no net effect. Support the above work with entries for transactions (without numbers). · Transactions: a) Collected customer's account (before had billed for services); no cash discount b) Bought equipment; gave down payment and long-term note for the rest c) Recorded depreciation on equipment d) Declared and paid dividends e) Issued company's own common stock at more than par value f) Sold merchandise on account (on credit) g) Recorded the cost of merchandise sold-use perpetual system h) Accrued estimated assurance warranty obligation i) Bought supplies on account (on credit) - used "real" (balance sheet) account j) Bought land by issuing own stock; included stockbroker fees k) Sold building at less than acquisition cost; received cash 1) Paid salaries: 1/4/23. Had accrued some salaries: 12/31/22. Fiscal year end: 12/31. m) Paid for previous credit purchase of merchandise after discount period n) Collected monies in advance for future services; used nominal (I/S) account A L SE NI

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Ill. For each transaction listed below for 2022 and 2023:
Indicate the net effect of the transaction on: A (Assets), L (Liabilities), SE (Stockholders' Equity), and
NI (Net Income). Use: + for increase, - for decrease, or 0 for no net effect.
Support the above work with entries for transactions (without numbers).
I
Transactions:
a) Collected customer's account (before had billed for services); no cash discount
b) Bought equipment; gave down payment and long-term note for the rest
c) Recorded depreciation on equipment
d) Declared and paid dividends
e) Issued company's own common stock at more than par value
f) Sold merchandise on account (on credit)
g) Recorded the cost of merchandise sold - use perpetual system
h) Accrued estimated assurance warranty obligation
i) Bought supplies on account (on credit) - used "real" (balance sheet) account
j) Bought land by issuing own stock; included stockbroker fees
k) Sold building at less than acquisition cost; received cash
1) Paid salaries: 1/4/23. Had accrued some salaries: 12/31/22. Fiscal year end: 12/31.
m) Paid for previous credit purchase of merchandise after discount period
n) Collected monies in advance for future services; used nominal (I/S) account
A
L
SE NI

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