12th Edition

ISBN: 9780134486444

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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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 E2.15E

Analyzing and journalizing transactions

Learing Objective 3

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions:

a. Debit Equipment and credit Cash.
b. Debit Garcia, Withdrawals and credit Cash.
c. Debit Wages Payable and credit Cash.
d. Debit Equipment and credit Garcia, Capital.
e. Debit Cash and credit Unearned Revenue.
f. Debit Advertising Expense and credit Cash.
g. Debit Cash and credit Service Revenue.

Use the following information to answer Exercises E2−16 and E2−17.

The following transactions occurred for Lawrence Engineering:

Jul. 2	Received $14,000 contribution from Brett Lawrence, owner, in exchange for capital.
4	Paid utilities expense of $370.
5	Purchased equipment on account, $1,600.
10	Performed services for a client on account, $2,900.
12	Borrowed $7,100 cash, signing a notes payable.
19	The owner, Brett Lawrence, withdrew $200 cash from the business.
21	Purchased office supplies for $840 and paid cash.
27	Paid the liability from July 5.

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Chapter 2, Problem E2.14E

Chapter 2, Problem E2.16E

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Horngren's Accounting (12th Edition)

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