Financial Accounting (12th Edition) (What's New in Accounting)

12th Edition

ISBN: 9780134725987

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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 2, Problem 2.68CEP

(Learning Objective 5: Analyzing accounts) The manager of West Industries Furniture needs to compute the following amounts:

a. Total cash paid during December.
b. Cash collections from credit customers during December. Analyze Accounts Receivable.
c. Cash paid on a note payable during December. Analyze Notes Payable.

Here's the additional data you need to analyze the accounts:

Balance			Additional Information for the Month of December
Account	Nov 30	Dec 31	Additional Information for the Month of December
1. Cash...............................	$14,500	$ 7,250	Cash receipts, $99,000
2. Accounts Receivable.......	29,000	27,000	Sales on account, $49,000
3. Notes Payable................	15,500	23,500	New borrowing, $28,000

Requirement

1. Prepare a T-account to compute each amount, a through c.

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Chapter 2, Problem 2.67BP

Chapter 2, Problem 2.69CEP

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Chapter 2 Solutions

Financial Accounting (12th Edition) (What's New in Accounting)

Ch. 2 - All of the following events at a sandwich shop are...Ch. 2 - Identify the asset from the following list of...Ch. 2 - Amounts owed to a company by its customers would...Ch. 2 - Thorpe Corporation purchases a new delivery truck...Ch. 2 - Adam Corporation issues stock to Cara Riley in...Ch. 2 - Blake Company completed a consulting job and...Ch. 2 - Prob. 7QC Ch. 2 - Accounts Payable had a normal beginning balance of...Ch. 2 - Which of the following debit and credit rules is...Ch. 2 - A companys beginning Cash balance was 8,000. At...

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Solution Summary: The author explains the T-account as an individual account, where the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure items are recorded.

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Chapter 2 Solutions