Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of thecompany's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its mostlikely description.Transaction1.2.3.4.5.Transaction1.2.3.4.5.Cash+$ 42,000 +38,000 +28,000 +28,000 +31,000 +AccountsReceivable$0008,0008,000Assets++++++Supplies +$0 +7,000 +7,000 +7,000 +7,000 +=The owner invested $42,000 cash in the business.The company provided services for $8,000 cash.The company purchased equipment for $10,000 cash.The owner invested $3,000 cash in the business.The owner invested $3,000 cash in the business.Equipment =$ 0 =010,00010,00010,000+Liabilities +AccountsZen,PayableCapital$0 + $ 42,0003,000 + 42,0003,000 + 42,0003,000 + 42,0003,000 + 42,000X Answer is complete but not entirely correct.DescriptionEquity++++++XXXRevenues$0008,00011,000

Name: Zen began a new consulting firm on January 5. The accounting equation
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of thecompany's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with

The accounting equation is considered as foundation of the double-entry accounting system.The…

Business

Accounting

Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the company's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most likely description. Transaction 1. 2. 3. 4. 5. Transaction 1. 2. 3. 4. 5. Cash + $ 42,000 + 38,000 + 28,000 + 28,000 + 31,000 + Assets. Accounts Receivable + Supplies + $0 + + 7,000 + 7,000 + 7,000 + 7,000 + $0 0 + 0 + 8,000 + 8,000 + Equipment The owner invested $42,000 cash in the business. The company provided services for $8,000 cash. The company purchased equipment for $10,000 cash. The owner invested $3,000 cash in the business. The owner invested $3,000 cash in the business. = = $0 = 0 = 10,000 = 10,000 = 10,000 = Equity Liabilities + Accounts + Zen, Payable. Capital + Revenues $0 + $ 42,000 + 3,000 + 42,000 + 3,000 + 42,000 + 3,000 + 42,000 + 3,000 + 42,000 + Answer is complete but not entirely correct. Description ✓ X ✓ X X $0 0 0 8,000 11,000

Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the company's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most likely description. Transaction 1. 2. 3. 4. 5. Transaction 1. 2. 3. 4. 5. Cash + $ 42,000 + 38,000 + 28,000 + 28,000 + 31,000 + Assets. Accounts Receivable + Supplies + $0 + + 7,000 + 7,000 + 7,000 + 7,000 + $0 0 + 0 + 8,000 + 8,000 + Equipment The owner invested $42,000 cash in the business. The company provided services for $8,000 cash. The company purchased equipment for $10,000 cash. The owner invested $3,000 cash in the business. The owner invested $3,000 cash in the business. = = $0 = 0 = 10,000 = 10,000 = 10,000 = Equity Liabilities + Accounts + Zen, Payable. Capital + Revenues $0 + $ 42,000 + 3,000 + 42,000 + 3,000 + 42,000 + 3,000 + 42,000 + 3,000 + 42,000 + Answer is complete but not entirely correct. Description ✓ X ✓ X X $0 0 0 8,000 11,000

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

Required information [The following information applies to the questions displayed below.] Lawson Consulting, which began operations on December 1, had the following accounts and amounts on December 31. The I. Lawson, Capital account balance at December 1 was $0 and the owner invested $21,680 cash in the company on December 2. On December 31, the company's accounts and amounts for the month of December are shown in the table below: Cash Accounts receivable Equipment Accounts payable I. Lawson, Capital $ 14,000 I. Lawson, Withdrawals 6,300 Services revenue 8,300 Rent expense 4,620 Wages expense 21,680 $ 3,300 17,400 3,800 8,000 Use the above information to prepare a December 31 balance sheet for Lawson Consulting. Hint: The ending I. Lawson, Capital account balance as of December 31 is $23,980. LAWSON CONSULTING Balance Sheet As of December 31 Assets: Liabilities: Cash $ 14,000 Accounts payable 2$ 4,620 Accounts receivable 6,300 1. Lawson, Capital 23,980 Equipment $ 8,300 Total equity…
Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template. 1. Shareholders contribute $15,000 cash to the business in exchange for common stock. 2. Employees earn $750 in wages that have not been paid at period-end. 3. Inventory of $4,500 is purchased on credit. 4. The inventory purchased in transaction 3 is sold for $6,750 on credit. 5. The company collected the $6,750 owed to it per transaction 4. 6. Equipment is purchased for $7,500 cash. 7. Depreciation of $1,500 is recorded on the equipment from transaction 6. 8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,200 of supplies are still available. No supplies were purchased during this period. 9. The company paid $15,000 cash toward the principal on a note payable; also, $750 cash is paid to cover this note's interest…
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Balance Cash $ 27,800 Accounts receivable 18,400 Accounts payable 14,700 Common stock 16,900 Retained earnings 14,600 The following events apply to Oak Consulting for Year 2: Provided $72,900 of services on account. Incurred $2,900 of operating expenses on account. Collected $50,900 of accounts receivable. Paid $39,700 cash for salaries expense. Paid $15,840 cash as a partial payment on accounts payable. Paid a $9,000 cash dividend to the stockholders. c. Show the beginning balances and the transactions in a horizontal statements model.
Directions: Given the account balances below, calculate the indicated amounts for the current year's financial statements. Hint: Build a balance sheet and income statement in columns to the right of the given numbers and copy each provided item into the appropriate section for the balance sheet or income statement. Retained Earnings prior year 7,050 PP&E, net 4,440 Wages Expense 190 Administration Expense 150 Cash 1,550 Tax Expense 205 Common Stock 300 Inventory 3,700 Accounts Payable 1,800 Accounts Receivable 2,700 Notes Payable 2,200 Depreciation Expense 220 Cost of Goods Sold 6,700 Dividends 200 Interest Expense 85 Revenue 8,400 Tax Liability…
You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous year’s journal entries, shown as follows: Journal Entries, Year 1 PAGE 15 GENERAL JOURNAL ACCOUNTING EQUATION DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Jan. 1 Cash 1,062,060.00 ↑ 2 Premium on Bonds Payable 62,060.00 ↑ 3 Bonds Payable 1,000,000.00 ↑ 4 Jun. 30 Interest Expense 19,397.00 ↓ 5 Premium on Bonds Payable 3,103.00 ↓ 6 Cash 22,500.00 ↓ 7 Jul. 1 Cash 1,921,280.00 ↑ 8 Discount on Bonds Payable 78,720.00 ↓…
21. EMB Consulting Services had the following transactions for the month of November. Journalize the transactions and include an explanation with each entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) View the transactions. Nov. 1: The business received $10,000 cash and issued common stock. Accounts and Explanation Date Nov. 1 Issued common stock. Paid advertising expense. Paid cash on account. Paid dividends. Performed services and received cash. Performed services on account. Purchased supplies on account. Received cash on account. Debit Credit Transactions Nov. 1 Nov. 15 Nov. 18 Nov. 20 Nov. 28 The business received $10,000 cash and issued common stock. Purchased supplies on account, $400. Paid advertising bill, $150. Received $1,000 from customers for services rendered. Cash dividends of $500 were paid to stockholders. Print Done X
Required information [The following information applies to the questions displayed below.] As of December 31 of the current year, Armani Company's records show the following. Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earnings, December 31, prior year Retained earnings, December 31, current year Dividends Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses Required: Prepare the current year-end balance sheet for Armani Company. Cash Supplies Accounts receivable Equipment Total assets Assets $ ARMANI COMPANY Balance Sheet December 31 11,100 Accounts payable 7,100 10,100 Total liabilities 6,100 Common stock Retained earnings $ 11,100 10, 100 7,100 6,100 13, 200 15, 100 4,100 6,100 14, 100 35,200 24,200 21,100 13,100 9,100 Liabilities Equity Total equity $ 34,400 Total liabilities and equity $ $ 13,200 13,200 15,100 6,100 21,200 34,400
Required information [The following information applies to the questions displayed below.] Lawson Consulting had the following accounts and amounts on December 31. Totals Cash Accounts receivable Equipment Accounts payable Common stock Use the above information to prepare a December 31 trial balance. LAWSON CONSULTING Trial Balance December 31 $ Debit $14,500 6,400 8,400 Rent expense 4,710 Wages expense 22,190 Dividends Services revenue 0 $ Credit 0 $ 3,400 17,700 3,900 8,000
[The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Debit Credit Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts $ 25,600 47,200 $ 4,700 Inventory Land 20,500 51,000 17,500 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock 2,000 29,000 55,000 40,000 31,100 $161,800 Retained Earnings Totals $161,800 During January Year 1, the following transactions occur: 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date. 6 Purchase additional inventory on account, $152,000. January January January 15 The comapany sales for the first half the onth total $140,000. All of these sales are on account. The cost of the units sold is $76,300. January 23 Receive $125,900 from customers on accounts receivable. January 25 Pay $95,000 to inventory suppliers on…
Adams Company reports the following balance sheet accounts as of December 31. $ 7,200 Retained earnings 74,200 Notes payable (due in 9 years) 8,200 Office supplies 6 Salaries payable Buildings Prepaid rent Merchandise inventory Accounts payable Prepaid insurance Accounts receivable Common stock Required: Prepare a classified balance sheet. Current assets Total current assets Plant assets Total plant assets Total assets Current liabilities Total current liabilities Long-term liabilities Total long-term liabilities Total liabilities 16,400 Land 22,000 Accumulated depreciation-Building 5,400 Mortgages payable (due in 5 years) 16,000 Cash 14,000 ADAMS COMPANY Balance Sheet December 31 Assets Liabilities Equity P Prev 8 of 8 $ $ $ ‒‒‒ --- T 0 0 0 0 0 0 0 Next $ 70,000 54,000 4,400 46,000 7,400 36,000 40,000
"Marquis Smith started IT Consulting Services Incorporated on January 1, Year 1. The company experienced the following events during its first year of operation 1 On June 1 Year 1, the company borrowed $21.600 cash from the bank. The note had a one-year term and 6% annual interest rate 2. On December 31. Year 1, the company adjusted the accounting records to recognize accrued interest expense on the bank note Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Assets Cash 21 600 2 Total CNet change in cash 01 21.600 Notes Payable 21,600…
Required information [The following information applies to the questions displayed below.] Lawson Consulting, which began operations on December 1, had the following accounts and amounts on December 31. The I. Lawson, Capital account balance at December 1 was $0 and the owner invested $16,580 cash in the company on December 2. On December 31, the company's accounts and amounts for the month of December are shown in the table below: Cash Accounts receivable Equipment Accounts payable I. Lawson, Capital $9,000 I. Lawson, Withdrawals 5,300 Services revenue 7,300 Rent expense 3,720 Wages expense 16,580 $ Use the above information to prepare a December 31 balance sheet for Lawson Consulting. Hint: The ending I. Lawson, Capital account balance as of December 31 is $17,880. LAWSON CONSULTING Balance Sheet 0 Total equity $ 2,300 14,400 2,800 8,000 $ 0 0