MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
12th Edition
ISBN: 9780134727677
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 2, Problem 2.59AP
LO 2,3
(Learning Objectives 2, 3: Analyze the impact of business transactions on the
| Assets | = | Liabilities | + | ||||||||||
| Cash | + | Receivable |
+ | Supplies | + | Equipment | = | Accounts Payable |
+ | Common Stock |
+ | Earnings |
|
| Bal | 2,500 | 3,250 | 12,200 | 8,300 | 6,300 | 3,350 | |||||||
During October 2018. Grueser Computing completed these transactions:
- a. The company received cash of $3,700 and issued common stock.
- b. Performed services for a customer and received cash of $6,700.
- c. Paid $4,700 on accounts payable.
- d. Purchased supplies on account, $800.
- e. Collected cash from a customer on account, $1,300.
- f. Consulted on the design of a computer system and billed the customer for services rendered, $4,700.
- g. Recorded the following business expenses for the month: (1) paid office rent—$1,900: (2) paid advertising—$500.
- h. Declared and paid a cash dividend of $3,400.
Requirements
- 1. Analyze the effects of the preceding transactions on the accounting equation of Grueser Computing, Inc.
- 2. Prepare the income statement of Grueser Computing. Inc., for the month ended October 31, 2018. List expenses in decreasing order by amount.
- 3. Prepare the entity's statement of retained earnings for the month ended October 31,2018.
- 4. Prepare the
balance sheet of Grueser Computing, Inc., at October 31,2018.
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Chapter 2 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
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