COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 2, Problem 1PA
Analyzing the effects of transactions on the
On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.
INSTRUCTIONS
Analyze the following transactions. Record in equation form the changes that occur in assets, liabilities, and owner’s equity. (Use plus, minus, and equals signs.)
TRANSACTIONS
- 1. The owner invested $100,000 in cash to begin the business.
- 2. Paid $20,250 in cash for the purchase of equipment.
- 3. Purchased additional equipment for $15,200 on credit.
- 4. Paid $12,500 in cash to creditors.
- 5. The owner made an additional investment of $25,000 in cash.
- 6. Performed services for $9,750 in cash.
- 7. Performed services for $7,800 on account.
- 8. Paid $6,000 for rent expense.
- 9. Received $5,500 in cash from credit clients.
- 10. Paid $7,550 in cash for office supplies.
- 11. The owner withdrew $12,000 in cash for personal expenses.
Analyze: What is the ending balance of cash after all transactions have been recorded?
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Requirement:
Journalize the transactions using the ff: account: Cash: Accounts Receivable; Equipment; Furniture; Accounts Payable; Loans Payable; Maharlika, Capital; Maharlika, Withdrawal; Service Revenue; and Utilities Expense. Record the journal entries in a journal sheet in proper format.
Maharlika decided to invest in a travel agency. Below are the transaction for the month of July 2021.
July 1: Maharlika invested a car worth P750,000, cash of P1,400,000 and furniture worth P350,000
July 4: Borrowed P350,000 from Shey Bank
July 5: Bought furniture from Fim’s P30,000 on account.
July 6: Withdrew cash P100,000 for personal use
July 15: Rendered services to Joyous Tours P500,000 on account
July 21: Paid utilities for P10,000
July 24: Performed services, P25,000
July 27 Paid furniture previously acquired
July 30: Collected account from Joyous Tours
Question 1.
From the following transactions, classify Debit and Credit and record Journal Entries. prepare the given ledger accounting in T format. The transactions for the month of March 2020 are given hereunder.
Mar 1. Meeza started a business investing RO 12,500. Out of which she deposited RO 5,000 in the bank account the same day.
Mar 2. She purchased tools and equipment for RO 4,750. She paid 60% of the amount by cheque. Remaining amount (RO 1900) recorded in ‘Other liabilities account’ to be paid next 30 days.
Mar 6. She produced 600 units of product for RO 20,000 on credit and sold all of them on credit to Mr. John for RO 24,000.
Mar 9. Purchased Raw-Material for RO 6,200 on 15 days credit for Aesha.
Mar 11 She paid off the outstanding amount on tools and equipment account purchased on 2nd March through Bank account.
Mar 13. Mr. John paid RO 15,000 by Cheque.
Mar 16. Paid the supplier of Raw material (March 9) by cheque no 132613, RO 5,325. Reminder as a cash discount and…
Suppose you started your own landscaping business. A customer paid you $120 in advance to mow his lawn while he was on vacation. You also performed
landscaping services for a local business, but the business hasn't paid you the $390 fee yet. In addition, a customer paid you $130 cash for landscaping services.
Answer the following questions about the correct way to account for your revenue under accrual accounting:
1. Name the accounts used to record these events.
2. Prepare the journal entries to record the three transactions.
1. Name the accounts used to record these events. (Leave unused cells blank.)
10
Chapter 2 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 2 - What is a business transaction?Ch. 2 - Prob. 1.2SRQCh. 2 - Prob. 1.3SRQCh. 2 - Prob. 1.4SRECh. 2 - Prob. 1.5SRECh. 2 - Prob. 1.6SRACh. 2 - Prob. 2.1SRQCh. 2 - Prob. 2.2SRQCh. 2 - What information is included in the financial...Ch. 2 - Prob. 2.4SRE
Ch. 2 - Prob. 2.5SRECh. 2 - Prob. 2.6SRACh. 2 - Prob. 1CSRCh. 2 - Prob. 2CSRCh. 2 - Prob. 3CSRCh. 2 - Prob. 4CSRCh. 2 - Prob. 5CSRCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the effects of each of the following...Ch. 2 - What is the fundamental accounting equation?Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Computing net income or net loss. The Computer...Ch. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Preparing a statement of owners equity and a...Ch. 2 - Analyzing the effects of transactions on the...Ch. 2 - Prob. 2PACh. 2 - Prob. 3PACh. 2 - The following equation shows the transactions of...Ch. 2 - Prob. 1PBCh. 2 - Prob. 2PBCh. 2 - Prob. 3PBCh. 2 - Prob. 4PBCh. 2 - The following account balances are for William...Ch. 2 - Richard Harris opened a gym and fitness studio...Ch. 2 - Prob. 1MFCh. 2 - Prob. 2MFCh. 2 - Prob. 3MFCh. 2 - How does an accounting system help managers...Ch. 2 - Prob. 1ED
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- Analyze the following transactions in terms of their effect on the basic accounting equation, and prepare Financial Reports : 1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000, note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $800 in cash for the current month’s rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. Li withdrew $1,800 from the business for living expenses. 10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4 Dont give me handwritten answerarrow_forwardEvangeline Jamili Landscaping Services has the following completed transactions. Prepare the journal entries for the March transactions. Use the following accounts: Cash; Accounts Receivale; Prepaid Insurance; Equipment; Accounts Payable; Jamili, Capital; Jamili, Withdrawals; Landscaping Revenues; Salaries Expense; Rent Expense; Gas and Oil Expense; Supplies Expense and Utilities Expense Jamili deposited P200,000 in a bank account in the name of the business. Jamili invested personal gardening equipment amounting to P10,000 in the business. Mar. 1 4. Bought a used trailer on account from Sala Sales, P8,500. Paid rent for the month, P6,000. Bought a used backhoe from Mobile Equipment, P62,000, paying P30,000 in cash and the balance on account. 7. 10 Bought insurance for one year, P9,000. Performed landscaping services on account for Tindoy Restaurant, P34,200. 13 14 Bought supplies on account from Office Décor, P2,400. Performed landscaping services on account for Urios University,…arrow_forwardTo practice how the use of debits, credits, and double entry accounting affect individual T accounts and thus The Accounting Formula, consider the following situations. Prepare T accounts as required and write the corresponding accounting formula. Kimchi purchased a small cafe' in a town with P600,000 of her own money. Help her prepare her T accounts for her first month of operations using the following 1. information. a. Kimchi invested P600,000 cash in the cafe'. Cash Owners' Equity b. Kimchi purchased P3,500 in food, all of which is to be paid next month (accounts payable). Food Inventory Accounts Payable С. Kimchi generated P10,000 in revenue, all received in cash. Cash Revenue d. Kimchi paid her employees P3,600 this month with payroll checks (cash account).arrow_forward
- To practice how the use of debits, credits, and double entry accounting affect individual T accounts and thus The Accounting Formula, consider the following situations. Prepare T accounts as required and write the corresponding accounting formula. Kimchi purchased a small cafe' in a town with P600,000 of her own money. Help her prepare her T accounts for her first month of operations using the following 1. information. a. Kimchi invested P600,000 cash in the cafe'. Cash Owners' Equity b. Kimchi purchased P3,500 in food, all of which is to be paid next month (accounts payable). Food Inventory Accounts Payable C. Kimchi generated P10,000 in revenue, all received in cash. Cash Revenue d. Kimchi paid her employees P3,600 this month with payroll checks (cash account). Cash Salaries and Wagesarrow_forwardDesign your own financial transaction worksheet and indicate the effect of each transaction bellow using the balance sheet equation. After each transaction is properly recorded, compute new subtotals for the Assets, Liabilties and Owner's Equity. Example: owner invested P 5,000,000 cash in a new business. a. Acquired for P4, 000, 000 cash a commercial area to be used as business space. b. Received P100, 000 for services still to be rendered next month. c. Paid P7, 500 to an advertising agency for a newspaper ad. d. Purchased P30, 000 for supplies inventory on account. e. Paid P12, 000 to the supplier for inventory purchased in (d) and gave a note for the remaining P18, 000. f. Loaned P35,000 to the owner and accepted his 45 - day note. g. Bought P5,000 of supplies for cash. i. Then company agreed to buy two services vehicles six months from now for P600, 000. Answer all please thank you This is the format cash receivable inventories PPE Payable Capital Withdrawal Revenue and Expenses…arrow_forwardOpen the following T accounts: Cash; Repair Supplies; Repair Equipment; Accounts Payable; D. Stan, Capital; D. Stan, Withdrawals; Repair Fees Earned; Salaries Expense; and Rent Expense. Record the following transactions for the month of June directly in the T accounts; use the letters to identify the transactions in your T accounts. Determine the balance in each account. a.Daniel Stan opened Stan Repair Service by investing $4,300 in cash and $1,600 in repair equipment. b.Paid $800 for the current month’s rent. c.Purchased repair supplies on credit, $1,100. d.Purchased additional repair equipment for cash, $600. e.Paid salary to an employee, $900. f.Paid $400 of amount purchased on credit in c. g.Accepted cash for repairs completed, $3,720. h.Withdrew $1,000 in cash.arrow_forward
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