1.
Concept Introduction:
Double-entry accounting: According to the double-entry system, the
The general
2.
Concept Introduction:
Double-entry accounting: According to the double-entry system, the
Posting of each of the entries to T-accounts and ending balance of each of the given T-accounts.
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Chapter 2 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
- Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: 1. Received cash in exchange for common stock, 18,000. 2. Paid advertising expense, 4,850. 3. Purchased supplies on account, 2,100. 4. Billed customers for delivery services on account, 14,700. 5. Received cash from customers on account, 8,200. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by 18,000; Common Stock increases by 18,000.arrow_forwardThe following selected transactions were completed by Salvo Delivery Service during February: 1. Received cash from owner as additional investment in exchange for common stock, $35,000. 2. Paid creditors on account, $1,800. 3. Billed customers for delivery services on account, $11,250. 4. Received cash from customers on account, $6.740. 5. Paid dividends, $1.000. Requirements: Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock.Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $35,000: Common Stock increases by $35.000.arrow_forwardKing Company uses the following accounts from its chart of accounts: Cash (111), Accounts Receivable (112), Equipment (121), Accounts Payable (211), Jamie King, Capital (311), Jamie King, Withdrawals (312), Professional Fees (411), Utilities Expense (511), and Salaries Expense (512).Record the following transactions into transaction analysis charts.a. Jamie King invested in the business $1,000 cash and equipment worth $700 from his personal assets.b. Billed clients for services rendered, $12,000. c. Utilities bill due but unpaid, $150.d. Withdrew cash for personal use, $120.e. Paid salaries expense, $250.arrow_forward
- I want the Answer of this Questionarrow_forwardOn October 17, Nickle Company purchased a building and a plot of land for $582,300. The building was valued at $302,796 while the land carried a value of $279,504. Nickle paid $56,300 down in cash and signed a note payable for the balance. Required: Provide the journal entry for this transaction. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSNickle CompanyGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Office Equipment 17 Building 18 Truck LIABILITIES 21 Notes Payable 22 Accounts Payable 23 Unearned Revenue EQUITY 31 Marlene Nickle, Capital 32 Marlene Nickle, Drawing REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Maintenance Expense 59 Miscellaneous Expensearrow_forwardA Required information [The following information applies to the questions displayed below.] Required: 1. Prepare general journal entries to record the transactions of Spade Company by using the following accounts: Cash; Receivable; Supplies; Equipment, Accounts Payable; Common Stock; Dividends; Services Revenue; and Rent Expense 2. Post entries to T-accounts and the ending balances will be calculated. @ The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $11,500 cash in the company in exchange for common stock. b. The company purchased supplies for $334 cash. c. The company purchased $6,360 of equipment on credit. d. The company received $1,357 cash for services provided to a customer. e. The company paid $6,360 cash to settle the payable for the equipment purchased in transaction c. f. The company billed a customer $2,438 for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,02Tash as partial payment for the…arrow_forward
- A number of business transaction carried out by smalling manufacturing company are as follows Borrowed money from a bank Sold land for cash at a price equal to its cost Paid a liability Purchases a computer on credit The owner invested cash in the business Purchase office equipment on cash Collected an account receivable Indicate the effects of each these transaction on the total amount of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the following column heading and the code letter I for increase D for decrease and NE for no effect the answer for transaction a is provided as an example Transaction Assets = liabilities + owner’s equity I = Iarrow_forwardThe following are the balance sheet and income statement data of PROSPERITY INC. Balance Sheet Accounts (December 31) Cash Marketable Securities Accounts Receivable-net................ Inventories Land...... Building - net Machinery and Equipment-net............ Other Assets Prepaid Expenses Notes Payable, Trade Accounts Payable, Trade........... Expenses Payable Long Term Notes Due 2025. 15% Preferred Stock, P100 par............. Common Stock, P10 par... Retained Earnings ***********... 20 x 2 Income Statement Accounts Sales... Sales Returns and allowances Inventory, December 31, 20 x 2 Inventory, December 31, 20 x 1... Purchases Selling Expenses..... Additional Information: Dividends paid on preferred stock Dividends paid on common stock Market price per share on common stock P 20 X 2 Working Capital Current Ratio Acid Test Ratio Receivable Turn-over Age of Receivables (use 365 days) Inventory Turn-over Working Capital Turn-over 150,000 850,000 500,000 750,000 500,000 550,000…arrow_forwardThe accounts and balances that follow in attached image are from Buy-It Company’s general ledger. Complete a Statement of Cash Flow, Income Statement, Balance Sheet, and Statement of Owner's Equityarrow_forward
- The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $41,385 Accounts receivable (net) 27,338 Inventory 36,309 Property, plant, and equipment 206,732 Total assets $311,764 Liabilities and Stockholders' Equity Current liabilities $56,225 Long-term liabilities 90,205 Stockholders' equity—Common 165,334 Total liabilities and stockholders' equity $311,764 Income Statement Net Sales $82,724 Cost of goods sold (33,090) Gross margin 49,634 Operating expenses (29,417) Interest expense (4,136) Net income $16,081 Number of shares of common stock outstanding 6,061 Market price of common stock $25 Total dividends paid $9,700 Cash provided by operations $41,385 Using the data provided for…arrow_forwardPlease read the transaction of FunSun. Co and answer the following questions. Categorize the transactions into equity, assets, liabilities, gain, loss, income, and expenses. Provide the rationale for each classification. Date Transactions April 1: Commenced business with $35,000 of common stock for cash $35000 April 2 Purchased Office supply for $ 1100 on account April 5 Billed customers $ 10000 on the account. April 12 Purchased a delivery van for $ 7,000 on loan. April15 Paid rent for $ 5000. April 16 Paid Salaries to employees $4000 April 17 Cash sales for $ 2000 April 20 Paid insurance for one-year policy $1800. April 21 Collected $ 9000 for the bill on April 5. April 27 Purchased additional furniture by paying cash for $ 2000. April 29 Cash withdrawal for personal use $ 1000 Additional entries: (a) Depreciation for the month of April on van 5% (b) Accrued but unpaid employee salaries were…arrow_forwardPrepare compound journal entries for each transaction. The owner invests $6,500 cash and $3,500 of equipment in the company in exchange for common stock. The company acquires $2,000 of supplies by paying $500 cash and putting $1,500 on credit (accounts payable).arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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