Selected transactions for Poway Landscaping Company are listed below.Describe the effect of each transaction on assets, liabilities, and owner’s equity.For example, the first answer is: Increase in assets and increase in owner’s equity. 1.Made cash investment to start business.2.Paid monthly rent.3.Purchased equipment on account.4.Billed customers for services performed.5.Withdrew cash for owner's personal use.6.Received cash from customers billed in (4).7.Incurred advertising expense on account.8.Purchased additional equipment for cash.9.Received cash from customers when service was performed.>>>>>>>>

Selected transactions for Poway Landscaping Company are listed below. Describe the effect of each transaction on assets, liabilities, and owner’s equity. For example, the first answer is: Increase in assets and increase in owner’s equity.

Selected transactions for Poway Landscaping Company are listed below. Describe the effect of each transaction on assets, liabilities, and owner’s equity. For example, the first answer is: Increase in assets and increase in owner’s equity.

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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For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders’ equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders’ equity as (f) a dividend. Account Classifications Accounts Related Transactions 1. ____________ Utilities payable Amounts owed for utilities. 2. ____________ Cash Cash available for use. 3. ____________ Salaries expense Cost of salaries. 4. ____________ Common stock Shares of ownership sold to investors. 5. ____________ Service revenue Sale of services to customers.
Selected transactions completed by a proprietorship are described below. Indicate the effects of each transaction on assets (A), liabilities (L), and owner's equity (OE) inserting "+" for increase, "-" for decrease, and "NE" for no effect in the appropriate columns at the right. If appropriate, you may insert more than one symbol in a co A L OE Received cash from owner as an (a) additional investment (b) Purchased supplies on account (c) Paid rent for the current month (d) Received cash for services sold to customers Returned some defective supplies (e) purchased in (b) (f) Paid insurance premiums in advance (g) Paid cash to creditor for purchases in (b) (h) Charged customers for services sold on асcount Paid cash to a customer as a refund for (i) an overcharge Received cash on account from customers (j) (k) Owner withdrew cash for personal use
Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Cash c. Fees earned d. Land e. Supplies f. Wages expense
InstructionsIndicate with the appropriate letter whether each of the transactions above results in: (a) An increase in assets and a decrease in assets. (b) An increase in assets and an increase in owner’s equity. (c) An increase in assets and an increase in liabilities. (d) A decrease in assets and a decrease in owner’s equity. (e) A decrease in assets and a decrease in liabilities. (f) An increase in liabilities and a decrease in owner’s equity. (g) An increase in owner’s equity and a decrease in liabilities.
When a company expenses the cost of maintenance for its heating and cooling system, thatcost will appear on itsa. Income statement.b. Statement of retained earnings.c. Balance sheet.d. Statement of stockholders’ equity.
The statement of owner's equity: Group of answer choices Reports how equity changes at a point in time. Reports how equity changes over a period of time. Reports on cash flows for operating, financing, and investing activities at a point in time. Reports on cash flows for operating, financing, and investing activities over a period of time.
Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) owner's equity: a. Accounts receivable b. Accounts payable c. Cash d. Fees earned e. Land f. Rent expense g. Supplies
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