2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Textbook Question

Chapter 4, Problem 4.1E

Transaction Analysis. The following transactions are taken from the books of Miller Manufacturing.

a. Bought office equipment with cash, $30,000.
b. Bought supplies on credit from a vendor, $15,000.
c. Sold goods for cash, $40,000 (ignore the inventory and cost of goods sold entry of this transaction).
d. Bought raw materials from a supplier on account, $22,000.
e. Sold goods to customers on account, $65,000 (ignore the inventory and cost of goods sold entry of this transaction).
f. Purchased raw materials by issuing a note payable, $14,000.
g. Paid cash toward note payable balance, $4,000.
h. Received cash from customer to apply to credit account balance, $3,000.
i. Paid for accounting and legal fees in cash, $5,000
j. Paid salaries in cash, $12,000.

Show the effect of each transaction on assets, liabilities, and equity using the accounting equation.

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Chapter 4, Problem 4.24BE

Chapter 4, Problem 4.2E

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Chapter 4 Solutions

Intermediate Accounting (2nd Edition)

Ch. 4 - Prob. 4.1Q Ch. 4 - ShoeBuy uses reversing entries for events such as...Ch. 4 - What is equity? What are the three components of...Ch. 4 - Prob. 4.4Q Ch. 4 - Will all transactions have a dual effect on the...Ch. 4 - Prob. 4.6Q Ch. 4 - What is meant by the term normal balance? Provide...Ch. 4 - Why is the general journal referred to as the book...Ch. 4 - Are account balances found in the general ledger?...Ch. 4 - What is the purpose of an unadjusted trial...

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Solution Summary: The author analyzes the accounting equation to determine the effect of each transaction on asset, liability, and stockholders' equity.

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