Financial accounting
3rd Edition
ISBN: 9780077506902
Author: David J Spieceland Wayne Thomas Don Herrmann
Publisher: Mcgraw-Hill
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Textbook Question
Chapter 2, Problem 2.3E
Analyze the Impact of transactions on the
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions.
1. Issue 10,000 shares of common stock in exchange for $32,000 in cash.
2. Purchase land for $19,000. A note payable is signed for the full amount.
3. Purchase storage container equipment for $8,000 cash.
4. Hire three employees for $2,000 per month.
5. Receive cash of $12,000 in rental fees for the current month.
6. Purchase office supplies for $2,000 on account.
7. Pay employees $6,000 for the first month’s salaries.
Required:
For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders’ equity increases.
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1. Borrows $8,500 of cash from the bank by signing a formal agreement to repay the loan in 2 years.
2. Buys $6,800 of new equipment on account.
3. Pays off $4,800 of accounts payable.
4. Pays off $2,400 of notes payable.
Required:
a. Show the effect of these transactions on the basic accounting equation.
b. Prepare the journal entries that would be used to record the transactions.
Complete this question by entering your answers in the tabs below.
Required A Required B
Show the effect of these transactions on the basic accounting equation. (Enter any decreases to account balances with a minus sign.)
Transaction Analysis
Liabilities
1. Cash
2. Equipment
3.
Assets
Accounts Pavable
35,261
31
3,200 = Accounts Payable
6,800 - Accounts Payable
II
3,200 +
(6,800) +
tv
Stockholders' Equity
Next >
=
CALONG
X
Help
Sav
C
Consider the following transactions for Julianne Corporation:
a. Issue common stock for $15,000.
b. Purchase equipment for $11,400 cash.
c. Pay employees' salaries of $3,800.
d. Provide services to customers for $6,800 cash.
1. Post the beginning Cash balance of $4,000 and then post the above transactions.
2. Calculate the ending balance of the Cash account.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Post these transactions to the Cash T-account. Assume the balance of Cash before these transac
Beginning Balance
Debit
Cash
Credit
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Chapter 2 Solutions
Financial accounting
Ch. 2 - Prob. 1RQCh. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - 10.Suzanne knows that an increase to an expense...
Ch. 2 - 11.What is a journal? What is a journal entry?Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - 15.Describe the events that correspond to the...Ch. 2 - 16.What does a T-account represent? What is the...Ch. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - 20.If total debits equal total credits in the...Ch. 2 - List steps in the measurement process (LO21) Below...Ch. 2 - Balance the accounting equation (LO22) Using the...Ch. 2 - Suppose a local company has the following balance...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the effect of debits and credits on...Ch. 2 - Prob. 2.6BECh. 2 - Record transactions (LO24) The following...Ch. 2 - Prob. 2.8BECh. 2 - Analyze T-accounts (LO25) Consider the following...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.11BECh. 2 - Correct a trial balance (LO26) Your study partner...Ch. 2 - Listed below are several terms and phrases...Ch. 2 - Prob. 2.2ECh. 2 - Analyze the Impact of transactions on the...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the components of retained earnings...Ch. 2 - Indicate the debit or credit balance of accounts...Ch. 2 - Associate debits and credits with external...Ch. 2 - Prob. 2.8ECh. 2 - Identify transactions (LO24) Below are recorded...Ch. 2 - Prob. 2.10ECh. 2 - Record transactions (LO24) Bearcat Construction...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Prob. 2.14ECh. 2 - Post transactions to T-accounts (LO25) Consider...Ch. 2 - Identify transaction (LO25) Below are T-accounts....Ch. 2 - Prob. 2.17ECh. 2 - Prepare o trial balance (LO26) Below is the...Ch. 2 - Prob. 2.19ECh. 2 - Prob. 2.20ECh. 2 - Below is a list of activities for Jayhawk...Ch. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Refer to the transactions described in P24A. Keep...Ch. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Analyze the impact of transactions on the...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Record transactions (LO24) Flip Side of P25B Eli...Ch. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.9BPCh. 2 - Prob. 2.1APCPCh. 2 - Prob. 2.2APFACh. 2 - Prob. 2.3APFACh. 2 - Prob. 2.4APCACh. 2 - Prob. 2.5APECh. 2 - Prob. 2.6APIRCh. 2 - Prob. 2.7APWC
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