Horngren's Accounting, Student Value Edition (12th Edition)

12th Edition

ISBN: 9780134487151

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…

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Textbook Question

Chapter 1, Problem P1.40APGA

Using the accounting equation for transaction analysis

Meg McKinney opened a public relations firm called Solid Gold on August 1,2018. The following amounts summarize her business on August 31,2018:

Learning Objective 4

Cash $13,600

Chapter 1, Problem P1.40APGA, Using the accounting equation for transaction analysis Meg McKinney opened a public relations firm

During September 2018, the business completed the following transactions:

a. Meg McKinney contributed $17,000 cash in exchange for capital.
b. Performed service for a client and received cash of $800.
c. Paid off the beginning balance of accounts payable.
d. Purchased office supplies from OfficeMax on account, $1,200.
e. Collected cash from a customer on account, $2,000.
f. McKinney withdrew $1,600.
g. Consulted for a new band and billed the client for services rendered, $4,500.
h. Recorded the following business expenses for the month:

Paid office rent: $1,000.
Paid advertising: $500.

Analyze the effects of the transactions on the accounting equation of Solid Gold using the format presented in Exhibit 1-5.

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Chapter 1, Problem E1.39E

Chapter 1, Problem P1.41APGA

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Chapter 1 Solutions

Horngren's Accounting, Student Value Edition (12th Edition)

Ch. 1 - Prob. 1QC Ch. 1 - Which of the following is not an external user of...Ch. 1 - Prob. 3QC Ch. 1 - Prob. 4QC Ch. 1 - Prob. 5QC Ch. 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...

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