Question

Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following. Sept. 1 Sept. 3 Sept. 9 Sept. 14 Paid rent for the month of September, $4,400. Billed Fine Line Homes $5,620 for surveying services. The entire amount is due on or before September 28. (Weida uses an account entitled Surveying Revenue when billing clients.) Provided surveying services to Sunset Ridge Developments for $2,830. The entire amount was collected on this date. Placed a newspaper advertisement in the Daily Item to be published in the September 20 issue. The cost of the advertisement was $165. Payment is due in 30 days. Received a check for $5,620 from Fine Line Homes for the amount billed on September 3. Provided surveying services to Thompson Excavating Company for $1,890. Weida collected $400 cash, with the balance due in 30 days. Sent a check to the Daily Item in full payment of the liability incurred on September 14. Declared and paid a $7,600 cash dividend to the company's stockholders. Sept. 25 Sept. 26 Sept. 29 Sept. 30 Instructions a. Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of September. Organize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect. The September 1 transaction is provided for you. Income Statement Balance Sheet Transaction Sept. 1 Revenue - Expenses = Net Income NE D Assets = Llabilities + Owners' Equity D NED

Answer 1

a) impact of transactions of income statment and balance sheet in attachment below

SEP 14 WILL HAVE EFFECT IN ASSETS SIDE AS CASH IS iNCREASING AND ACCOUNT RECEIVABLE DECREASING WHICH NULLFIES THE EFFECT SO NE IS WRITTEN

income statement Balance sheet Revenue - Expenses = Net income Assets Owner's equity NE Liabilities + NE NE - NE NE Transacations 1-Sep 3-Sep 9-Sep 14-Sep 25-Sep 26-Sep 29-Sep 30-Sep NE NE = D = NE NE NE NE NE - NE NE NE = NE = NE NE NE NE

b) journal entry

Date	Journal	Amount (DR)	Amount(CR)
sep1	Rent A/c Dr To Cash A/c	4400	4400
	( being rent paid in cash)
sep 3	Account Receivable A/c dr To Surveying Revenue A/c	5620	5620
	( being revenue earned and invoice raised on fine line homes and amount is due)
sep 9	cash A/c DR To Surveying Revenue A/c	2830	2830
	( being services provided in cash)
sep 14	Advertisment A/c Dr To account Payable A/c	165	165
	( being Adverstisment expenses to be paid to dailyitem)
sep 25	CAsh A/c dr To account receivable A/c	5620	5620
	( being cash received from fine line homes )
sep 26	Account Receivable A/c Cash A/c To Surveying Revenue A/c	1490 400	1890
	(Being bill raised on thompson for $1490 and cash collected for services given)
sep 29	Account payable A/c To cash A/c	165	165
	( being payment made to Daily item for advertisement)
sep 30	Dividend A/c dr To cash A/c	7600	7600
	( Being dividend declared )

C)

1) TRANSACTION WHICH IS PAYMENT OF DIVIDEND IS NOT TREATED AS EXPENSE BECAUSE DIVIDEND IS DECLARED FROM COMPANY RETAINED EARNINGS WHICH ARE ALSO CALLED PROFITS , SO CASH GIVEN IS NOT TREATED AS EXPENSE AS DIVIDEND DECLARED IS NOT AN EXPENSE FOR COMPANY , ITS THE DISBRIBUTION OF PROFIT TO ITS SHAREHOLDERS WHICH ONLY HAVE EFFECT ON BALANCE SHEET

2) CASH PAYMENT TO CREDITORS , WILL NOT BE TREATED AS EXPENSE

3) PURCHASE OF INVENTORY