FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 1, Problem 8PSA
To determine
The assets, liabilities and equity relation, are known as the accounting equation. Assets are the resources of company and that increase as business expand whereas liabilities are the burden on company that has to pay in future; Equity means the owner claim on assets. An accounting equation represent the assets of the company are equal to the liabilities and equity of the company.
In can be represented as follow,
Net Income:
Total earning of the company is called net income of the company. When the total expense deducted from the total revenue than the resultant is net income or net loss.Net profit of the company is also called net profit. The investor can take a decision on the basis of net income of the company. If net income is more the investor attract to the company.
1.
To identify: The effect of transactions on the accounting equation.
2.
To determine
The net income of the company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
TB 02-79 Your company buys a $2 million warehouse pay...
Your company buys a $2 million warehouse paying $300,000 in cash and issuing $1.7 million in promissory notes. This will be posted as:
Multiple Choice
O $2 million credited and $300,000 debited to assets; $1.7 million debited to liabilities.
$2 million debited and $300,000 credited to assets; $1.7 million credited to liabilities.
O $2 million credited to assets and $2 million debited to liabilities.
$2 million debited to assets and $2 million credited to liabilities.
36
Sanyu Sony started a new business and completed these transactions during December.
Dec. 1
2
3
5
6
8
15
18
20
Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in
the name of Sony Electric in exchange for its common stock.
The company rented office space and paid $1,000 cash for the December rent.
The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to
pay the $8,200 balance in 30 days.
The company purchased office supplies by paying $800 cash.
The company completed electrical work and immediately collected $1,200 cash for these services.
The company purchased $2,530 of office equipment on credit.
The company completed electrical work on credit in the amount of $5,000.
The company purchased $350 of office supplies on credit.
The company paid $2,530 cash for the office equipment purchased on December 8.
24
28
29
30
The company paid $540 cash for this month's utility bill.
31 The company paid $950 cash in…
kk
Subject :- Accounting
Chapter 1 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - If the assets of a company increase by $100,000...Ch. 1 - Brunswick borrows $50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Identify four kinds of external users and describe...Ch. 1 - Prob. 4DQCh. 1 - Prob. 5DQ
Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Identifying items with financial statements P2...Ch. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Computing and interpreting return on assets A2 In...Ch. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Identifying effects of transactions on the...Ch. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Using the accounting equation A1 Answer the...Ch. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Prob. 7PSACh. 1 - Prob. 8PSACh. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Identifying effects of transactions on financial...Ch. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Analyzing transactions and preparing financial...Ch. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1AACh. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- prepare accounting cyclearrow_forwardQ1 Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January, 2021 and invests cash of RO. 20,000 as his capital. Amir Enterprise’s purchases machinery worth RO. 1,000 paid 35% in cash and remaining on credit. The company purchased goods worth RO. 5,000. Paid RO. 2,000 cash and balance on credit The company made a sale of RO. 2800 (cost being RO 3000) on credit basis The company took loan of RO. 10,000 from Bank Muscat . Mr. Amir withdrew RO. 1,000 from the business for his personal use You need to record the above transactions in an equation form. Q2Select any five financial transactions of your choice and make journal entries for the same.arrow_forwardProblem 6: The following are the transactions of NS Company, owned by Norina Salvador, for the month of September 2017. Sept. 1 kupor Кибката 4 сл 7 9 11 15 2/N Norina invested P550,000 cash and building and land worth 1,000,000 and 750,000 respectively. Hired an accountant with a monthly salary of P20,000 memo entry Purchased computer equipment worth 30,000 paying half and the balance on account. Jacets. Payouble Purchased supplies on credit, P450. Paid xent for the whole year P24,000. Whih year (prepaid) ((advenve Billed client for services on credit, P50,000. Paid half month salary of the accountant 18 Norina provided services and received cash amounting to P5,750. 21 Paid janitorial expense for the month amounting to P11,435 23 Norina withdrew P10,000 for personal use. 25 27 Received payment from customer previously billed P20,000 Received billing from Meralco amounting to P7,200. Paid half month salary of the accountant 30arrow_forward
- Answer full question. Answer required a,b,c and earrow_forwardDengerarrow_forwardFinancial update as of June 15 • Your existing business generates $135,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $25,714. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. • You also need to purchase $10,800 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $6,750. Based on your evaluation you have______in free cash flow.arrow_forward
- Q6: statement for retained earning Note: do it on Excel pleasearrow_forward26 Fireside, Incorporated uses accrual basis accounting. Its balance sheets reported Accounts Receivable of $12,000 at the end of its first year and $18,000 at the end of its second year. Its income statement reported Sales Revenue of $120,000 in its second year. What would Fireside's revenues have been if it had used cash basis accounting? Multiple Choice $120,000 $114,000 $126,000 $12,000arrow_forwardDetermine the Impact to the accounting equation related to Transactions each transaction 1 Tom, Lisa, Katie and Tim each contributed 250,000 in exchange for Common Stock of the TLKT Corporation The company purchased a building and land worth 200,000 and 100,000, respectively by putting 20% down and 1 carrying a mortgage on the balance. 2 The company purchased 1,000 units of inventory at $50 per unit on account. 3 The company purchased a 1 year insurance policy for $3,600 4 The company purchased $2,400 of supplies 15 The company received $40,000 for 10 service jobs to be completed in the future Jan. Jan. Jan. Jan. Jan. Jan. Jan. 16 The company hired an employee The company sold inventory for $60,000 receiving 15,000 in cash and the remainder on account; record the sale Jan. 17 first. 17 The inventory sold was worth 20,000; record the reduction of inventory second 24 The company completed 3 service jobs for $5,000 each. (Not related to the entry on January 15). Jan. Jan. X Jan. 29 The…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License