Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Chapter 3, Problem 3.3.1AAP
To determine
Introduction: Each financial transaction or economic event will affect either assets, liabilities, or owners’ equity. Thus, the basis for recording the transaction in the accounting system depends on the
Assets = Liabilities + Stockholder's Equity
The Preparation of summary table showing the effect of each transaction on the accounting equation.
Expert Solution & Answer
Answer to Problem 3.3.1AAP
According to
Assets = Liabilities + Stockholder's Equity
Total Assets=($22,400 +$ 1,500 + $4,000 + 350) = $28,250
Liabilities and Stockholders's equity =($350 + $7,500 + $20,000 + $400) = $28,250
Explanation of Solution
The table is prepared as follows:
| Assets = | Liabilities + | Stockholders’ equity | ||||||
| Date/Balance | Cash | Receivables | Supplies | Computer Equipment | Accounts payable | Notes payable | Capital Stock | |
| 3/2 | $20,000 | $20,000 | ||||||
| Bal. | $20,000 | $20,000 | ||||||
| 3/7 | $7,500 | $7,500 | ||||||
| Bal. | $27,500 | $7,500 | $20,000 | |||||
| 3/12 | $350 | $350 | ||||||
| Bal. | $27,500 | $350 | $350 | $7,500 | $20,000 | |||
| 3/19 | $2,000 | $2,000 | ||||||
| Bal. | $27,500 | $2,000 | $350 | $350 | $7,500 | $20,000 | $2,000 | |
| 3/20 | -$650 | -$650 | ||||||
| Bal. | $26,850 | $2,000 | $350 | $350 | $7,500 | $20,000 | $1,350 | |
| 3/22 | $500 | -$500 | ||||||
| Bal. | $27,350 | $1,500 | $350 | $350 | $7,500 | $20,000 | $1,350 | |
| 3/26 | $1,400 | $1,400 | ||||||
| Bal. | $28,750 | $1,500 | $350 | $350 | $7,500 | $20,000 | $2,750 | |
| 3/29 | -$4,000 | $4,000 | ||||||
| Bal. | $24,750 | $1,500 | $350 | $4,000 | $350 | $7,500 | $20,000 | $2,750 |
| 3/30 | -1,650 | -$1,650 | ||||||
| Bal. | $23,100 | $1,500 | $350 | $4,000 | $350 | $7,500 | $20,000 | $1,100 |
| 3/31 | $700 | -$700 | ||||||
| -$700 | -$700 | |||||||
| Bal. | $22,400 | $1,500 | $350 | $4,000 | $350 | $7,500 | $20,000 | $400 |
Total Assets = $28,250Total Liability and Capital = $28,250
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Chapter 3 Solutions
Using Financial Accounting Information
Ch. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10E
Ch. 3 - Prob. 3.11MCECh. 3 - Prob. 3.12MCECh. 3 - Prob. 3.13MCECh. 3 - Prob. 3.14MCECh. 3 - Prob. 3.15MCECh. 3 - Prob. 3.16MCECh. 3 - Prob. 3.17MCECh. 3 - Prob. 3.18MCECh. 3 - Prob. 3.1PCh. 3 - Prob. 3.2.1PCh. 3 - Prob. 3.2.2PCh. 3 - Prob. 3.2.3PCh. 3 - Prob. 3.2.4PCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.2PCh. 3 - Prob. 3.3.3PCh. 3 - Prob. 3.3.4PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5.1MCPCh. 3 - Prob. 3.5.2MCPCh. 3 - Prob. 3.5.3MCPCh. 3 - Prob. 3.6.1MCPCh. 3 - Transaction Analysis and Financial Statements Blue...Ch. 3 - Prob. 3.6.3MCPCh. 3 - Prob. 3.6.4MCPCh. 3 - Prob. 3.7.1MCPCh. 3 - Prob. 3.7.2MCPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.8MCPCh. 3 - Prob. 3.9.1MCPCh. 3 - Problem 3-9 Transaction Analysis and Journal...Ch. 3 - Prob. 3.10.1MCPCh. 3 - Prob. 3.10.2MCPCh. 3 - Prob. 3.10.3MCPCh. 3 - Prob. 3.10.4MCPCh. 3 - Prob. 3.11MCPCh. 3 - Prob. 3.12.1MCPCh. 3 - Prob. 3.12.2MCPCh. 3 - Prob. 3.13.1MCPCh. 3 - Prob. 3.13.2MCPCh. 3 - Prob. 3.14.1MCPCh. 3 - Prob. 3.14.2MCPCh. 3 - Prob. 3.14.3MCPCh. 3 - Prob. 3.14.4MCPCh. 3 - Prob. 3.14.5MCPCh. 3 - Prob. 3.15.1MCPCh. 3 - Prob. 3.15.2MCPCh. 3 - Prob. 3.15.3MCPCh. 3 - Prob. 3.15.4MCPCh. 3 - Prob. 3.1AAPCh. 3 - Prob. 3.2.1AAPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.1AAPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.4AAPCh. 3 - Prob. 3.4AAPCh. 3 - Prob. 3.5.1AAMCPCh. 3 - Prob. 3.5.2AAMCPCh. 3 - Prob. 3.5.3AAMCPCh. 3 - Prob. 3.6.1AAMCPCh. 3 - Prob. 3.6.2AAMCPCh. 3 - Prob. 3.7.1AAMCPCh. 3 - Prob. 3.7.2AAMCPCh. 3 - Prob. 3.8AAMCPCh. 3 - Prob. 3.9.1AAMCPCh. 3 - Prob. 3.9.2AAMCPCh. 3 - Prob. 3.10.1AAMCPCh. 3 - Prob. 3.10.2AAMCPCh. 3 - Prob. 3.10.3AAMCPCh. 3 - Prob. 3.10.4AAMCPCh. 3 - Prob. 3.11AAMCPCh. 3 - Prob. 3.12.1AAMCPCh. 3 - Prob. 3.12.2AAMCPCh. 3 - Prob. 3.13.1AAMCPCh. 3 - Prob. 3.13.2AAMCPCh. 3 - Prob. 3.14.1AAMCPCh. 3 - Prob. 3.14.2AAMCPCh. 3 - Prob. 3.15.1AAMCPCh. 3 - Prob. 3.15.2AAMCP
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