College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 4QY
R. Nelson invests his personal computer, with a fair market value of $2,500, in the business. How would this transaction be recorded?
- a. A debit to R. Nelson, Capital, $2,500.
- b. A credit to Cash, $2,500.
- c. A credit to Professional Fees, $2,500
- d. A debit to Computer, $2,500.
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PROBLEM:
Alex Sun had the following transactions. Use the accounting equation
show their effect on his Assets, Liabilities, and Capital.
A. Invested P65,000.
B. Purchased securities for cash P8,500.
C. Purchased a home for P15,000: giving P 5,000 in cash and the balance
through loan account.
D. Sold securities costing P 1,000 for P 1,500.
E. Purchase an old car for P 2,800.
F. Received cash as salary P 3,600.
G Paid cash P 600 for loan and P 200 for interest.
H. Paid cash for expense P 400.
1. Received cash for dividend on securities P 300.
22. MC.03.027
Summit Company paid Hacienda Products, a creditor, on account. The transaction would involve a
a. credit to Cash.
b. debit to Expenses.
c. credit to Accounts Payable.
d. debit to Cash.
23. MC.03.028
J. Forest deposited $60,000 in the bank in the name of the business. The transaction would involve a
a. debit to J. Forest, Capital.
b. credit to Cash.
c. debit to Cash.
d. credit to J. Forest, Drawing.
24. MC.03.029
G. Wilson invested her personal computer, which had a fair market value of $5,000, in her business. The transaction would involve a:
a. debit to Equipment.
b. debit to Accounts Receivable.
c. debit to Cash.
d. debit to G. Wilson, Capital.
25. MC.03.030
Red Baron Company purchased supplies for cash, $1,950. The transaction would involve a
a. debit to Supplies.
b. credit to Accounts Payable.
c. credit to Supplies Expense.
d. debit to Cash.
In the case of Allan Thorpe founder of Alcazar's company. He has used up $2100 of supplies(asset). To record this transaction, do your credit Supplies a/c and debit the Cash a/c, or would you debit accounts receivable since he did state how he used up the supplies?
Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 3QYCh. 2 - R. Nelson invests his personal computer, with a...Ch. 2 - When preparing a trial balance, which of the...Ch. 2 - What would be the net income for Floress Catering?...Ch. 2 - On which financial statement(s) would R. Flores,...Ch. 2 - What is the amount of ending capital shown on the...Ch. 2 - Floress Catering purchased equipment that cost...Ch. 2 - Prob. 1DQ
Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - Prob. 1ECh. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - What Would You Say? A fellow accounting student...Ch. 2 - Prob. 3A
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