Question

inted by: [email protected]. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. a Identify the amounts (in $ millions) of its 2017 (1) assets, (2) liabilities, and (3) equity. b. Using amounts from part a, verify that Assets = Liabilities + Equity. OS 1-10 Identifying effects of transactions using accounting equation—Revenues and Expenses P1 Create the following table similar to the one in Exhibit 1.9. Assets Liabilities + Equity Cash + + Revenues Owner Capital Accounts Accounts Owner, Expenses Receivable Payable Withdrawals Then use additions and subtractions to show the dollar effects of each transaction on individual items of the accounting equation (identify each revenue and expense type, such as commissions revenue or rent expense). a The company completed consulting work for a client and immediately collected $5,500 cash earned. b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days. C. The company paid an assistant $1,400 cash as wages for the period. d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $700 cash for this period's cleaning services. Page 27 om T CON

Answer 1

QS1-10)

Assets

=

Liabilities

+

Equity

Cash

+

Accounts receivable

=

Accounts payable

+

Owners capital

-

Owner Withdrawal

+

Revenue

-

Expense

a

+5500

+5500

b

+4000

+4000

c

-1400

+1400

d

+1000

-1000

e

-700

+700

Total

4400

+

3000

=

0

+

0

-

0

+

9500

-

2100