Transaction |
Transaction Impact |
$10,000 is invested in the business by the owner |
Increase an asset and increase an owners' equity account |
Cash is withdrawn by the owner of the business |
Decrease an asset and decrease an owners' equity account |
$2000 in cash is borrowed from a local bank |
Increase an asset and increase a liability |
An accounts payable amount owed to a vendor is paid in cash |
Decrease a liability and decrease an asset |
A piece of kitchen equipment is purchased for $1500 |
Increase one asset and decrease another asset |
Preferred stock in a company is converted to common stock |
Increase an owners' equity and decrease another owners' equity |
A dividend is declared but not yet paid |
Increase a liability and decrease an owners' equity |
A note payable is created to repay an accounts payable (AP) |
Increase one liability and decrease another liability |
Long-term debt owed to a sole proprietor is converted to owners' equity |
Decrease a liability and increase an owners' equity account |
8. BONUS: Jerry Stevens is being trained in managerial accounting by his boss Sarah. For practice,...
For each of the following items give an example of a business transaction that has the described effect on the accounting equation:increase an asset and increase a liabilityincrease one asset and decrease another assetdecrease an asset and decrease owners equitydecrease an asset and decrease a liabilityincrease an asset and increase owners equity
LO2-3 EXERCISE 2.7 Effects of Business Transactions For each of the following categories, state concisely a transaction that will have the required effect on the elements of the accounting equation. a. Increase an asset and increase a liability. b. Decrease an asset and decrease a liability c. Increase one asset and decrease another asset d. Increase an asset and increase owners' equity. e. Increase one asset, decrease another asset, and increase a liability
Make one substantive response on this accounting transactions and their respective interpretations. A proprietor by the name of Chad Wilson, started a rental property business and during the month of June, he completed the following the transactions: a. The owner opened a business and deposited $30,000 from his personal funds. The keywords: Business and deposited. Since the accounts have been given to you in the accounting equation, which is Assets = Liabilities + Owner's Equity, you are to ensure...
solve part e E1-25 Using the accounting equation to analyze transactions As the manager of a Papa Sean's restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting equation: a. Increase one asset and decrease another asset. b. Decrease an asset and decrease equity. c. Decrease an asset and decrease a liability. d. Increase an asset and increase equity. e. Increase an asset and...
solve this all exercise 25 E1-25 Using the accounting equation to analyze transactions As the manager of a Papa Sean's restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting equation: a. Increase one asset and decrease another asset. b. Decrease an asset and decrease equity. c. Decrease an asset and decrease a liability. d. Increase an asset and increase equity. e. Increase an...
Indicate the effect of the following transaction on the elements of the accounting equation. Purchased land by signing a nine-month, non-interest-bearing note payable. assets increase; liabilities increase assets decrease; liabilities decrease assets increase; owner's equity increase assets increase; owner's equity decrease Question 2 3 pts Received $12,000 cash for services provided to a customer. debit accounts receivable; credit fees earned debit cash; credit fees earned debit fees earned; credit cash debit cash; credit supplies expense Account used to record amounts...
TRANSACTIONS 1. Paid $2,100 for utilities. 2. Performed services for $10,500 on account 3. Received $6,500 from charge account customers 4. Paid salaries of $4,500 to employees 5. Paid $8,000 to a creditor on account. 6. Owner invested $90,000 in the business. 7. Purchased $26,700 of supplies on account. 8. Purchased equipment for $21,000 cash 9. Paid $6,000 for rent (in advance). 10. Performed services for $7,800 cash. Indicate the impact of each of the transactions below on the fundamental...
TRANSACTIONS 1 Owner invested $90,000 in the business 2 Purchased $26,700 supplies on account. 3. Purchased equipment for $21,000 cash. 4. Paid $6,000 for rent in advance). 5. Performed services for $7,800 cash. 6. Paid $2,160 for utilities 7. Performed services for $10,500 on account 8. Received $6,600 from charge account customers 9. Paid salaries of $4,500 to employees 10. Paid $6,000 to a creditor on account Indicate the impact of each of the transactions above on the fundamental accounting...
EXERCISE 1-13 The following selected transactions were completed by Salvo Delivery Service dur- ing February: Transactions Objective 7 1. Received cash from owner as additional investment, $35,000 2. Received cash for providing delivery services, $15,000 3. Paid creditors on account, $1,800 4. Billed customers for delivery services on account, $11,250 5. Paid advertising expense, $750. 6. Purchased supplies for cash, $800 7. Paid rent for February, $2,000 8. Received cash from customers on account, $6,740 9. Determined that the cost...
Cora Delivery Service during July Chapter 1 Introduction to Accounting and Business EX 1-12 Transactions The following selected transactions were completed by Cota Delivery Service 1. Received cash in exchange for common stock $35,000 2. Purchased supplies for cash, $1,100 3. Paid rent for October 54.500 4. Paid advertising expense, 5900. 5. Received cash for providing delivery services $33,000 6 Biled customers for delivery services on account $58.000 7. Paid creditors on account $2.900 & Received cash from customers on...