Homework Help is Here – Start Your Trial Now!
Business
Accounting
PROBLEM 7-6 EXPANDED ACCOUNTING EQUATION In each of the independent cases given below, find the missing amount: Aethan Co Bray Co Chenz Co Drenz Co Elmer Co Beginning balances: (4) 190,000 Assets 100,000 200,000 300,000 250,000 Liabilities 40,000 150,000 160,000 190,000 Ending balances: Assets 215,000 258,000 130,000 283,000 170,000 284,000 (5) 80,000 Liabilities 90,000 170,000 During the year: Net Income (Net Loss) (1) 50,000 (2) 25,000 (58,000) 30,000 3,000 Additional Investment 50,000 8,000 6,000 Drawings 5,000 12,000 (3) 60,000 40,000

PROBLEM 7-6 EXPANDED ACCOUNTING EQUATION In each of the independent cases given below, find the missing amount: Aethan Co Bray Co Chenz Co Drenz Co Elmer Co Beginning balances: (4) 190,000 Assets 100,000 200,000 300,000 250,000 Liabilities 40,000 150,000 160,000 190,000 Ending balances: Assets 215,000 258,000 130,000 283,000 170,000 284,000 (5) 80,000 Liabilities 90,000 170,000 During the year: Net Income (Net Loss) (1) 50,000 (2) 25,000 (58,000) 30,000 3,000 Additional Investment 50,000 8,000 6,000 Drawings 5,000 12,000 (3) 60,000 40,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Chapter 7 - The Accounting Equation and Rules of Debit and Credit PROBLEM 7-6 EXPANDED ACCOUNTING EQUATION In each of the independent cases given below, find the missing amount: Aethan Co Bray Co Chenz Co Drenz Co Elmer Co Beginning balances: 300,000 (4) 250,000 190,000 Assets 100,000 200,000 Liabilities 40,000 150,000 160,000 190,000 Ending balances: Assets 215,000 258,000 283,000 284,000 170,000 (5) Liabilities 90,000 130,000 170,000 80,000 During the year: Net Income (Net Loss) (1) 50,000 25,000 (58,000) 30,000 Additional Investment 50,000 (2) 12,000 8,000 6,000 3,000 Drawings 5,000 (3) 60,000 40,000 ndicate amounts here: 1. 2. 3. 4. 5. PROBLEM 7-7 ANALYZING TRANSACTIONS Indicate whether the following statement is TRUE or FALSE: Owner's investment of cash to the business increases both asset and liability accounts. 2. Withdrawal of cash by the owner for personal use will decrease cash and owner's capital. 3. Rendering service to a client for cash will increase cash and revenue. 4. Rendering service to a client on credit will increase asset and liability at the same time. 5. Collection of accounts for a client previously billed increases asset. 6. Purchasing an equipment on credit will increase asset and expense. 7. Payment of expenses decreases both the cash and expenses. 8. Borrowing money from the bank increases both the cash and the revenue. 9. Payment of accounts payable decreases both the asset and liability. 10. Receipt of note from a client in settlement of his accounts receivable will have no effect on the amount of the total asset of the business. 11. Issuance of a note to a supplier in settlement of the accounts payable decreases both the notes payable and accounts payable at the same time. 1. PROBLEM 7-8 ANALYZING TRANSACTIONS-BASIC ACCOUNTING EQUATION James Villamar Computer Company entered into the following transactions during April 2017: 1. Purchased computers for P200,000 from Enigma Co on account. 2. Paid P40,000 cash for April rent of the office space for the month. 106
Transcribed Image Text:Chapter 7 - The Accounting Equation and Rules of Debit and Credit PROBLEM 7-6 EXPANDED ACCOUNTING EQUATION In each of the independent cases given below, find the missing amount: Aethan Co Bray Co Chenz Co Drenz Co Elmer Co Beginning balances: 300,000 (4) 250,000 190,000 Assets 100,000 200,000 Liabilities 40,000 150,000 160,000 190,000 Ending balances: Assets 215,000 258,000 283,000 284,000 170,000 (5) Liabilities 90,000 130,000 170,000 80,000 During the year: Net Income (Net Loss) (1) 50,000 25,000 (58,000) 30,000 Additional Investment 50,000 (2) 12,000 8,000 6,000 3,000 Drawings 5,000 (3) 60,000 40,000 ndicate amounts here: 1. 2. 3. 4. 5. PROBLEM 7-7 ANALYZING TRANSACTIONS Indicate whether the following statement is TRUE or FALSE: Owner's investment of cash to the business increases both asset and liability accounts. 2. Withdrawal of cash by the owner for personal use will decrease cash and owner's capital. 3. Rendering service to a client for cash will increase cash and revenue. 4. Rendering service to a client on credit will increase asset and liability at the same time. 5. Collection of accounts for a client previously billed increases asset. 6. Purchasing an equipment on credit will increase asset and expense. 7. Payment of expenses decreases both the cash and expenses. 8. Borrowing money from the bank increases both the cash and the revenue. 9. Payment of accounts payable decreases both the asset and liability. 10. Receipt of note from a client in settlement of his accounts receivable will have no effect on the amount of the total asset of the business. 11. Issuance of a note to a supplier in settlement of the accounts payable decreases both the notes payable and accounts payable at the same time. 1. PROBLEM 7-8 ANALYZING TRANSACTIONS-BASIC ACCOUNTING EQUATION James Villamar Computer Company entered into the following transactions during April 2017: 1. Purchased computers for P200,000 from Enigma Co on account. 2. Paid P40,000 cash for April rent of the office space for the month. 106
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS