ACCOUNTING PRINCIPLES 122 5/16 >C<
17th Edition
ISBN: 9781323461471
Author: Horngren
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 9QC
Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this transaction affect Global Cleaning Service’s
Learning Objective 4
a. Increase both assets and liabilities by $180
b. Increase both assets and equity by $180
c. Increase both liabilities and equity by $180
d. Decrease liabilities by $180, and increase equity by $180
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
(Learning Objective 3: Analyze the impact of business transactions on accounts)The following selected events were experienced by either Smith Eldercare Services, Inc., acorporation, or Tony Smith, its major stockholder. State whether each event (1) increased,(2) decreased, or (3) had no effect on the total assets of the business. Identify any specific assetaffected.a. Paid $400 cash on accounts payable.b. Made a cash purchase of land for a building site for the business, $89,000.c. Sold land and received cash of $69,000 (the land was carried on the company’s books at$69,000).d. Received $15,400 cash from customers on account.e. Purchased medical equipment and signed a $90,000 promissory note in payment.f. Purchased a flat-screen TV for Smith’s home.g. Paid Smith a cash dividend of $4,000.h. Purchased office supplies on account for $1,200.i. Borrowed $62,000 from the bank for use in the business.j. Received $12,000 cash and issued stock to a stockholder.
(Learning Objectives 3, 4: Evaluate business operations; construct and analyze anincome statement, a statement of retained earnings, and a balance sheet) The assets andliabilities of Full Moon Products, Inc., as of December 31, 2018, and revenues and expenses forthe year ended on that date are as follows:Equipment........................... $ 115,000Interest expense................... 10,000Interest payable ................... 2,800Accounts payable ................ 25,000Salary expense..................... 108,900Building............................... 405,000Cash.................................... 46,000Common stock.................... 26,100Land................................... $ 29,000Note payable...................... 99,200Property tax expense .......... 7,300Rent expense ...................... 41,000Accounts receivable............ 85,000Service revenue................... 451,600Supplies.............................. 6,200Utilities expense ................. 8,100Beginning…
P1-65A. (Learning Objectives 3, 4: Evaluate business operations; construct and analyzean income statement, a statement of retained earnings, and a balance sheet) The assetsand liabilities of Oak Hill Garden Supply, Inc., as of December 31, 2018, and revenues andexpenses for the year ended on that date are as follows:Equipment........................... $110,000Interest expense................... 10,300Interest payable ................... 2,700Accounts payable ................ 26,000Salary expense..................... 108,400Building............................... 406,000Cash.................................... 44,000Common stock.................... 13,800Land................................... $ 25,000Note payable...................... 99,600Property tax expense .......... 7,400Rent expense ...................... 41,200Accounts receivable............ 84,900Service revenue................... 452,600Supplies.............................. 6,300Utilities expense .................…
Chapter 1 Solutions
ACCOUNTING PRINCIPLES 122 5/16 >C<
Ch. 1 - Prob. 1QCCh. 1 - Which of the following is not an external user of...Ch. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the Learning Objective 5...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - A business purchases an acre of land for $5,000....Ch. 1 - What does the going concern assumption mean for a...Ch. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - What is the accounting equation? Briefly explain...Ch. 1 - What are two ways that equity increases? What are...Ch. 1 - How is net income calculated? Define revenues and...Ch. 1 - What are the steps used when analyzing a business...Ch. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for ROA? Explain what ROA...Ch. 1 - Prob. S1.1SECh. 1 - Determining organizations that govern accounting...Ch. 1 - Identifying types of business organizations...Ch. 1 - Prob. S1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Prob. S1.6SECh. 1 - Prob. S1.7SECh. 1 - Identifying accounts Learning Objective 3 Consider...Ch. 1 - Prob. S1.9SECh. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 -
I rhr JoUou'ing ittfonnatioH to antovr Short...Ch. 1 -
I rhr JoUou'ing ittfonnatioH to antovr Short...Ch. 1 - Irhr JoUou'ing ittfonnatioH to antovr Short...Ch. 1 - Prob. S1.15SECh. 1 - Prob. S1.16SECh. 1 - Prob. E1.17ECh. 1 - Prob. E1.18ECh. 1 - 1. Accounting equation a. An economic resource...Ch. 1 - Prob. E1.20ECh. 1 - Prob. E1.21ECh. 1 - Prob. E1.22ECh. 1 - Prob. E1.23ECh. 1 - Prob. E1.24ECh. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. E1.29ECh. 1 - Preparing the financial statements Learning...Ch. 1 - Prob. E1.31ECh. 1 - Prob. E1.32ECh. 1 - Use the following information to answer Exercises...Ch. 1 - Prob. E1.34ECh. 1 - Prob. E1.35ECh. 1 - Prob. E1.36ECh. 1 - Prob. E1.37ECh. 1 - Prob. E1.38ECh. 1 - Prob. E1.39ECh. 1 - Prob. P1.40APGACh. 1 - Prob. P1.41APGACh. 1 - Prob. P1.42APGACh. 1 - Prob. P1.43APGACh. 1 - Prob. P1.44APGACh. 1 - Prob. P1.45APGACh. 1 - Prob. P1.46APGACh. 1 -
Astm
< ->»l 1 • ptl « I Sb
•ArtA* V...Ch. 1 - Prob. P1.48BPGBCh. 1 - PI »9K Preparing financial »uifmrnn I’kvx-nii.i...Ch. 1 - PI-SOB Preparing financial italtmmu Precision Pies...Ch. 1 - Prob. P1.51BPGBCh. 1 - Prob. P1.52BPGBCh. 1 - 1*1 S 4H I *it»g the jsi nmn|i equation foi...Ch. 1 - || V. , -
«••••"“ -
4 «k»wl Ml*«...Ch. 1 - Decision Case 1-1 Let’s examine a case using...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1FCCh. 1 - Prob. 1.1FSC
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
- (Learning Objective 1: Identify the current liabilities associated with operating activities)Identify the current liability associated with each of the following operating activities:1. Perform work on a warranty claim2. Pay income taxes3. Purchase supplies4. Pay payroll taxes5. Borrow money for operations using a short-term note6. Process cash received in advance from customers7. Purchase inventory8. Pay employee salariesarrow_forwardName: Learning Task #1 Directions: Complete the table below. The first item has been done for you. Decreased by List of Accounts Normal Increased by Classification (Debit Credit) Balance (Debit/ (Asset, Liabilities, Owner's Equity (Debit/ Credit) Credit) Revenue, Expense) Debit Credit Cash Asset Debit 11 Accounts Payable 12 Notes Payable 13 Salaries Payable 14 Utilities Payable 15 Liam,Capital 16 Liam.Withdrawal 17 Sales 18 Interest Income 19 Cost of Sales 20 Purchases andarrow_forwardLearning Task 1: Identify or classify the different account titles as to whether they belong to Assets, Liabilities, Owners' Equity Revenue or Expense of the busi- ness. Fill the amounts of the following SFP and SCI elements: Sales Current Assets Noncurrent Assets Current Liabilities Noncurrent Liabilities Expenses Net Income (Loss) Chart of Accounts SCI ACCOUNTS SFP ACCOUNTS ASSETS Account INCOME Acc. No. No. 410 Service Fees 110 Cash 420 Sales 120 Accounts Receivables Interest Income Gains Allow for Bad debts 430 125 130 Notes Receivable 440 EXPENSES 140 Inventory 150 Prepayments 510 Cost of SAles Freight-out Building Accum Depn-Bldg 160 515 165 520 Salaries Expense LIABILITIES 210 Accounts payable 530 Utilities Expense Notes Payable Interest Payable Salaries Payable Utilities Payable 220 540 Bad Debts Depreciation Advertising Expense 230 545 240 550 250 560 Taxes and Licenses Unearned Income Interest Expense Miscellaneous Expense 260 570 EQUITY Owner's Capital Owner's Drawing 580…arrow_forward
- Learning Outcome 7. Answer the following question in a short answer of 100-150 words; provide comprehensive information and examples in applicable, to support your answer. How Financial Statements are Interconnected? Explain.arrow_forwardKindly answer please. Thank you so mucharrow_forwardS1-6. (Learning Objective 3: Identify assets, liabilities, and stockholders’ equity accounts)Classify the following items as an asset (A), a liability (L), or stockholders’ equity (S) forTarget Corporation, a large retailer:a. Landb. Accrued expenses payablec. Suppliesd. Equipmente. Notes payablef. Long-term debtg. Retained earningsh. Prepaid expensesi. Accounts payablej. Accounts receivablek. Merchandise inventoryl. Common stockarrow_forward
- (Learning Objective 3: Analyze the impact of business transactions on accounts) Thefollowing selected events were experienced by either Cardinal Industries, Inc., a corporation, orLarry Cardinal, the major stockholder. State whether each event (1) increased, (2) decreased, or (3)had no effect on the total assets of the business. Identify any specific asset affected.a. Sold land and received a note receivable of $43,000 (the land was carried on thecompany’s books at $43,000).b. Purchased equipment for the business for $81,000 cash.c. Cardinal used personal funds to purchase a pool table for his home.d. Purchased land for a building site for the business and signed a $98,000 promissory noteto the bank.e. Received $140,000 cash and issued stock to a stockholder.f. Earned $15,000 in revenue for services performed. The customer promises to payCardinal Industries in one month.g. The business paid Cardinal a cash dividend of $4,500.h. Paid $12,000 cash on accounts payable.i. Received $37,000…arrow_forwardE1-23A. (Learning Objective 4: Identify financial statement by type of information) ButlerTech, Inc., is expanding into India. The company must decide where to locate and how tofinance the expansion. Identify the financial statement where these decision makers can findthe following information about Butler Tech, Inc. In some cases, more than one statement willreport the needed data.a. Revenueb. Common stockc. Current liabilitiesd. Long-term debte. Dividendsf. Ending cash balanceg. Adjustments to reconcile net income tonet cash provided by operationsh. Cash spent to acquire the buildingi. Income tax expensej. Ending balance of retained earningsk. Selling, general, and administrativeexpensel. Total assetsm. Net incomen. Income tax payablearrow_forwardS1-9. (Learning Objective 4: Identify appropriate financial statement) Suppose you areanalyzing the financial statements of Corley, Inc. Identify each item with its appropriatefinancial statement, using the following abbreviations: Income statement (I), Statement ofretained earnings (R), Balance sheet (B), and Statement of cash flows (C). Three items appearon two financial statements, and one item shows up on three statements.a. Salary expenseb. Dividendsc. Accounts payabled. Net incomee. Common stockf. Inventoryg. Interest revenueh. Cashi. Retained earningsj. Long-term debtk. Increase or decrease in cashl. Net cash provided by operatingactivitiesm. Sales revenuen. Net cash used for financingactivitiesarrow_forward
- S1-10. (Learning Objective 4: Explain aspects of financial statements) Apply yourunderstanding of the relationships among the financial statements to answer thesequestions.a. How can a business earn large profits but have a small balance of retained earnings?b. Give two reasons why a business can have a steady stream of net income over a fiveyear period and still experience a cash shortage.c. If you could pick a single source of cash for your business, what would it be? Why?d. How can a business be unprofitable several years in a row and still have plenty of cash?arrow_forwardFor each of these itens, list the assumption, principle, information characteristic, or convention that is violated. Write your Learning Task 4: Below are a number of accounting proccdures and practices in Prospere General Merchandise. answer in your notebook. ác company prepares financial reports are based on the SFAS promulgated by the ASC. 4. The assets and owner's couity are reported at fair value but business obliga tions are reported at historical cost. 3. The company maintains only one employee to function as accountant, inter- nal auditor, collector and treasurer. 4. The financial reports are always delayed. 5. Due to recession, estimated future earnings are reported in the current finan- cial reports of Prospere General Merchandise. 6. The accounting methods and procedures used are regularly changed semi- annually. 7. The accountant records transactions as desired by the owner without proper supporting documents. 8. The financial reports do not include minutes of the meeting,…arrow_forwardS1-11. (Learning Objective 4: Identify appropriate financial statement use) For each of thefollowing questions, indicate which financial statement would most likely be used to providethe information. Use the following abbreviations: Income statement (I), Statement of retainedearnings (R), Balance sheet (B), and Statement of cash flows (C).a. What were the company’s net sales for the year?b. What assets does the company have?c. How much cash was generated by operating activities?d. Why did the company’s retained earnings change during the year?e. How much in total debt does the company have?f. How well did the company perform during the year?g. Did the company declare a dividend during the year?h. How much cash did the company generate and spend during the year?i. What is the company’s financial position at the end of the year?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License