Ikaw passed the very difficult CPA board examination in October and immediately set-up his bookkeeping practice. During the first month of operation he completed the following transactions: a) Began the bookkeeping practice by placing P20,000 in bank account established for the business. b) Purchased a laptop computer for P30,000 - P10,000 in cash, balance in 5 monthly installments. c) Purchased office supplies for P4,000 on credit. d) Accepted P5,000 in cash for completing a bookkeeping contract. e) Billed clients P19,500 for services rendered during the month. f) Paid P2,000 of the amount owned for office supplies. g) Received P12,500 in cash from one client who had been previously billed for services rendered. h) Paid rent for the month in the amount of P12,000. i) Withdrew P400 from the practice for personal use. j) Paid monthly installment on the liability from the purchase of the laptop computer. REQUIRED: Show the effect of these transactions on the accounting equation by completing the table below. Identify each owner's equity transaction:

Ikaw passed the very difficult CPA board examination in October and immediately set-up his bookkeeping practice. During the first month of operation he completed the following transactions: a) Began the bookkeeping practice by placing P20,000 in bank account established for the business. b) Purchased a laptop computer for P30,000 - P10,000 in cash, balance in 5 monthly installments. c) Purchased office supplies for P4,000 on credit. d) Accepted P5,000 in cash for completing a bookkeeping contract. e) Billed clients P19,500 for services rendered during the month. f) Paid P2,000 of the amount owned for office supplies. g) Received P12,500 in cash from one client who had been previously billed for services rendered. h) Paid rent for the month in the amount of P12,000. i) Withdrew P400 from the practice for personal use. j) Paid monthly installment on the liability from the purchase of the laptop computer. REQUIRED: Show the effect of these transactions on the accounting equation by completing the table below. Identify each owner's equity transaction:

Name: f FacebookA HW 2 - Analysis of Transactions06_Accounting Equation and
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: f FacebookA HW 2 - Analysis of Transactions06_Accounting Equation and Eler x05 Accounting Concepts and Pri04 Types of Business According tO X-i classroom.google.com/c/NDY5MZKOOTY4MJ13/a/NDC1MDA3OTAWMJYX/details* O 0 :! Apps f (4) Facebook © Home - C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

David had the following activity with his checking account during the month of July: Starting checkbook balance of $701.13 July 15 electronic payroll deposit of $1,807.44 Online payment of $109.17 to Ameren Utilities Online payment of $104.00 to Gas Company Checks written on July 15 totaling $984.15 On July 27, he received an electronic payroll deposit of $1,807.43 What was David's checkbook balance as of July 31?
Next, consider the case of Washburn Flooring Company: The management at Washburn Flooring has determined that it takes an average of 6 days for checks the company writes to clear its bank account. Cash receipts from customers are reflected in Washburn's bank account an average of 2 days after the checks are received. On an average day, Washburn writes checks that total $40,000, and it receives checks from customers that total $50,000. Compute the collection float, the disbursement float, and the net float in dollars in the following table. (Note: By definition, collection float is always considered negative, and disbursement float is always positive. Both should be shown as positive numbers here. The net float, however, should be shown as positive if it is favorable and as negative if it is unfavorable.) Washburn Flooring Company Float Calculations Collection float Disbursement float Net float Given this information, you can deduce that on an average day, Washburn Flooring's bank…
Your friend Steve comes to you for help in preparing his bank reconciliation for his company Steve’s Electronic Shop inc. (“SES”) at the end of the first month of operation in June 2019: He provides you with the following information: Opening Book balance of: $12,423.21 Balance on the June 30th bank statement: $17,743.96 SES pays utilities and Insurance through Electronic Funds Transfers (EFT). For the month of June, the payments were respectively $328 and $145. Steve prepared the June 30th deposit of $1,872 but didn’t make it in time for the bank to record it in June Bank service charge for June was $12.50 Interest earned on checking account for June was $25 and automatically deposited The bank statement shows a deposit of $423 that SES didn’t make. After a call to the Bank Manager, she apologized and told John the error would be corrected in July The following cheques are outstanding as at June 30th: Cheque # Payee Amount 745 Landlord $ 2,100.00 751…
Rick Rambis operates a ski lodge center at Bull Mountain in Alaska. He has just received the monthly bank statement at October 31 from Bull National Bank. The bank statement shows an ending balance at October 31 of $750. The following items are listed on the statement:1. The bank collected rent revenue for Rick in the amount of $330.2. Service charge of $10.3. Two NSF checks from customers totaling $110.4. Printing check charge of $11.In reviewing his cash records and the bank statement, Rick identifies the following:1. Outstanding checks totaling $603.2. Deposit in transit on October 31 of $1,770.3. An error made by Rick: Rick recorded a salary check for $31 but it cleared the bank at $310.Rick’s cash records show a balance on October 31 of $1,997.Requireda) Reconcile the bank account.b) Prepare journal entries that should be made as a result of the bank reconciliation.c) What should the balance in Rick’s Cash account be after the reconciliation?d) What total amount of cash should the…
James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
5
Laboratory Management deposited into its account at Pulaski Bank a check issued by Fairway Farms in the amount of $150,000. The date of deposit was February 5. Pulaski, the depositary bank, initiated the collection process immediately by forwarding the check to Worthen Bank on the sixth. Worthen sent the check on for collection to M Bank Dallas, and M Bank Dallas, still on February 6, delivered the check to M Bank Fort Worth. That same day, M Bank Fort Worth delivered the check to the Fort Worth Clearinghouse. Because TAB/West Side, the drawee/payor bank, was not a clearinghouse member, it had to rely on TAB/Fort Worth for further transmittal of the check. TASI, a processing center used by both TAB/Forth Worth and TAB/West Side, received the check on the sixth and processed it as a reject item because of insufficient funds. On the seventh, TAB/West Side determined to return the check unpaid. TASI gave M Bank Dallas telephone notice of the return on February 7 but physically misrouted…
James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
2. Ranfurly has been operating a checking account for the past month. After his last transaction log reconciliation he calculated that his beginning balance was $3,465.22. He collected and deposited cash monies twice during the month in the amount of $354.44 and $900.00. He wrote check no 34 on august 3d in the amount of $56.78 to WSC, check no 35 pm august 18h in the amount of $667.00 to BPL, check no 36 on august 20h in the amount of $500.00 to Precious Tots preschool for his son, check no 37 on august 20h in the amount of $200.00 to Ycares fashion center, check no 38 on august 26th to Cable Bahamas in the amount of $90.00. His bank automatically withdraws $1500.00 for his monthly mortgage payment, and $500 for his monthly credit card payment. He also deposited his monthly paycheck on August 28 in the amount of $2900.00. Make all entries in the transaction log below: Transaction Date Description Debit Credit Balance Number
Please help
Lowell Bank reported the following checking account fees: $2 to see a real-live teller, $20 to process a bounced check, and $1 to $3 if you need an original check to prove you paid a bill or made a charitable contribution. This past month you had to transact business through a tellet six times-a total $12 cost to you. Your bank statement shows a $305,33 balance your checkbook shows a $1,009.76 balance. You received $1.10 in interest. An $80115 deposit was not recorded on your statement. The following checks were outstanding: No. 413. $28.30, No. 414, $18.60, and No. 418, $60.72. Prepare your bank reconciliation (Input all amounts as positive values. Round your answers to 2 decimal places) Checkbook balance Add: Interest Subtotal Deduct Teller fee Reconciled balance Y BANK RECONCILIATION $ 1,009 76 Bank balance Add: 1.10 $1,010.86 12.00 $ 998 58 Deposit in transit Subtotal Deduct Outstanding checks (total) Reconciled balance - ** $ 74 $ 305.33 801.15 1,106.48 107,62 998.86
You have been appointed as Davis college accountant and, the May 31 bank statement of Davis college has just arrived from bank of America. To prepare the bank reconciliation, you gather the following data:A. The May 31 bank balance is $ 19,209,820B. The bank statement includes two returned checks received from students as payment of tuition fees. One is a $67,500 NSF ( non sufficient fund) check received from Mr johnson and deposited on May 19. The other is $ 195,030 check received from Mr Jonathan and deposited on May 21 that was returned due to "unathorized signature".C. Davis college collects some operating funds from East&central-africa division (ECD) by EFT(electronic fund transfer). The May bank statement lists a $ 333,190 deposit for a collection from ECD that Davis college did not know until the bank statement of the month was received.D. The bank statement includes one special deposit of $ 916,000 interest revenue that Davis college earned on its bank balance during May.E.…