T-Account Transactions Exercise Smith Industries has asked you to open the books for their company. Their balance sheet is shown below. ASSETS Bank Accounts Receivable Supplies Land Building Furniture Equipment Total Assets Smith Industries Balance Sheet December 31, 2000 $ 2,500 1,500 1,000 100,000 200,000 25,000 75.000 $405,000 LIABILITIES purchased 15 years ago. 7. Made loan payment of $1,500. 8. Made mortgage payment of $2,000. Accounts Payable Bank Loan Mortgage $ 5,000 30,000 200.000 OWNER'S EQUITY J. Smith, Capital $ 170,000 Total Liabilities & Owner's Equity $ 405,000 Smith Industries, a consulting company, has also asked you to record the following transactions that occurred in the month of January. 1. Received a $500 cheque from L. Graydon (a debtor). 2. Paid Lawrence Co. (a creditor) $5,300. 3. J. Smith invested an additional $5,000 in the business. 4. J. Smith received a $20,000 bank loan so he could purchase a new company car for $19,500. 5. Purchased the company car for $19,500 cash. 6. Sold land for $120,000. The original price of this land was $50,000. It was originally STOP........... 9. A new client meets with J. Smith for consulting services and pays $800. The client will make the payment within 30 days. 10. The company computer breaks down so Geek Squad at Best Buy repair the computer for $350. Payment was made immediately. 11. J. Smith needs to attract more clients so contacts an advertising agency. The cost of advertising is $450 and payment is due within 30 days. 12. Advertising was a success! Today, J. Smith provided consulting services to 10 new clients who all paid cash, totaling $3,200. 13. The telephone bill, totaling $150, arrived today. Payment is required within 30 days. 14. J. Smith decides to take $400 from the business.
T-Account Transactions Exercise Smith Industries has asked you to open the books for their company. Their balance sheet is shown below. ASSETS Bank Accounts Receivable Supplies Land Building Furniture Equipment Total Assets Smith Industries Balance Sheet December 31, 2000 $ 2,500 1,500 1,000 100,000 200,000 25,000 75.000 $405,000 LIABILITIES purchased 15 years ago. 7. Made loan payment of $1,500. 8. Made mortgage payment of $2,000. Accounts Payable Bank Loan Mortgage $ 5,000 30,000 200.000 OWNER'S EQUITY J. Smith, Capital $ 170,000 Total Liabilities & Owner's Equity $ 405,000 Smith Industries, a consulting company, has also asked you to record the following transactions that occurred in the month of January. 1. Received a $500 cheque from L. Graydon (a debtor). 2. Paid Lawrence Co. (a creditor) $5,300. 3. J. Smith invested an additional $5,000 in the business. 4. J. Smith received a $20,000 bank loan so he could purchase a new company car for $19,500. 5. Purchased the company car for $19,500 cash. 6. Sold land for $120,000. The original price of this land was $50,000. It was originally STOP........... 9. A new client meets with J. Smith for consulting services and pays $800. The client will make the payment within 30 days. 10. The company computer breaks down so Geek Squad at Best Buy repair the computer for $350. Payment was made immediately. 11. J. Smith needs to attract more clients so contacts an advertising agency. The cost of advertising is $450 and payment is due within 30 days. 12. Advertising was a success! Today, J. Smith provided consulting services to 10 new clients who all paid cash, totaling $3,200. 13. The telephone bill, totaling $150, arrived today. Payment is required within 30 days. 14. J. Smith decides to take $400 from the business.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
M1
Transcribed Image Text:T-Account Transactions Exercise
Smith Industries has asked you to open the books for their company. Their balance sheet is shown
below.
ASSETS
Bank
Accounts Receivable
Supplies
Land
Building
Furniture
Equipment
Total Assets
Smith Industries
Balance Sheet
December 31, 2000
$ 2,500
1,500
1,000
100,000
200,000
25,000
75.000
$405,000
LIABILITIES
purchased 15 years ago.
7. Made loan payment of $1,500.
8. Made mortgage payment of $2,000.
Accounts Payable
Bank Loan
Mortgage
$
5,000
30,000
200.000
OWNER'S EQUITY
J. Smith, Capital
$170.000
Total Liabilities & Owner's Equity $ 405,000
Smith Industries, a consulting company, has also asked you to record the following transactions that
occurred in the month of January.
1. Received a $500 cheque from L. Graydon (a debtor).
2. Paid Lawrence Co. (a creditor) $5,300.
3. J. Smith invested an additional $5,000 in the business.
4. J. Smith received a $20,000 bank loan so he could purchase a new company car for $19,500.
Purchased the company car for $19,500 cash.
5.
6. Sold land for $120,000. The original price of this land was $50,000. It was originally
STOP...........
9. A new client meets with J. Smith for consulting services and pays $800. The client will make
the payment within 30 days.
10. The company computer breaks down so Geek Squad at Best Buy repair the computer for $350.
Payment was made immediately.
11. J. Smith needs to attract more clients so contacts an advertising agency. The cost of advertising
is $450 and payment is due within 30 days.
12. Advertising was a success! Today, J. Smith provided consulting services to 10 new clients who
all paid cash, totaling $3,200.
13. The telephone bill, totaling $150, arrived today. Payment is required within 30 days.
14. J. Smith decides to take $400 from the business.
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