Homework Answers
Answer to 11:
Stockholders' Equity will decrease as a result of this transaction.
Reason:
Following entry will be passed in case of this transaction:
| Account Title and Explanations | Debit | Credit |
| Advertising expense | 1,500 | |
| Accounts payable | 1,500 |
Advertising expense will reduce our profit which will in turn reduce our stockholders' equity.
Answer to 12:
Effect on accounting equation: Cash will increase and accounts receivable will decrease.
Reason:
Following entry will be passed in case of this transaction:
| Account Title and Explanations | Debit | Credit |
| Cash | 1,000 | |
| Accounts receivable | 1,000 |
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11. Jason Repair Company incurred $1,500 as an advertising expense and promised to pay the advertising...
11. Jason Repair Company incurred $1.500 as an advertising expense and promised to pay the advertising...
11. Jason Repair Company incurred $1.500 as an advertising expense and promised to pay the advertising agency within 30 days. The company is a sole proprietorship. Which of the following will decrease as a result of this transaction? A) Assets B) Jason, Capital C) Liabilities D) Revenues 12. Montgomery Equipment Rental Company received $1,000 cash from a customer, the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation?...
Nick's Landscaping Services incurred $500 as a repair expense and promised to pay the repair company...
Nick's Landscaping Services incurred $500 as a repair expense and promised to pay the repair company within 30 days. Which of the following accounts will increase as a result of this transaction? a. Accounts receivable B. cash C.accounts payable D. nick, capital
8. Precision Camera Services started the year with total assets of $110,000 and total liabilities of...
8. Precision Camera Services started the year with total assets of $110,000 and total liabilities of $45,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $120,000 and $90,000, respectively. During the year, there were no new capital contributions and the owner withdrew $50,000. What is the amount of owner's equity at the end of the year? A) $90,000 B) $120.000 C) $45.000 D) $50.000 9. Metropolitan Casting Services started the year with...
14) Mitchell Company receives a bill from one of its suppliers for advertising services received and...
14) Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of Mitchell? A) assets and equity decrease B) liabilities increase and equity decreases C) assets and liabilities increase D) liabilities and equity increase -3- 15. Country Homes Company just recorded a transaction in its books. If this transaction increased the total liabilities by $12.000,...
Springer Company, a sole proprietorship, had the following transactions in August Earned $4,000 of revenues on...
Springer Company, a sole proprietorship, had the following transactions in August Earned $4,000 of revenues on account, collected $4,000 from a customer for services provided last month; incurred $500 of repair expense and paid cash paid $500 for rent that it owed from the previous month. What is the net income in August? O A. $7,500 O B. $3,500 O C. $4,000 O D. $500 Click to select your answer G 1 6:06 PM /18/2020
13. Diamond Company had the following transactions during June Performed services for $5,000 on account; received...
13. Diamond Company had the following transactions during June Performed services for $5,000 on account; received cash on account, $7,000; paid $600 for repair expense; paid $2,000 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June transactions? A) $4,400 increase B) $4,400 decrease C) $7,000 increase D) $2,600 decrease 14) Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier...
10. Expenses incurred but not yet paid or recorded are called a. prepaid expenses. accrued expenses....
10. Expenses incurred but not yet paid or recorded are called a. prepaid expenses. accrued expenses. c. interim expenses. d. unearned expenses PROBLEM 1 (20 PTS.) Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. The owner, P. West, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased supplies for $1,000 cash. 3. Purchased equipment for $15,000, paying $5,000...
a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market...
a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. b. The company paid $1,500 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for...
Current Attempt in Progress Selected transactions for Thyme Advertising Company, Inc. are listed here. Describe the...
Current Attempt in Progress Selected transactions for Thyme Advertising Company, Inc. are listed here. Describe the effect of each transaction on assets, liabilities, and stockholders' equity. 1. 2. 3. Issued common stock to investors in exchange for cash received from investors. Paid monthly rent Received cash from customers when service was performed. Billed customers for services performed. Paid dividend to stockholders. 4. 5. 6. Incurred advertising expense on account. 7. 8. Received cash from customers billed in (4). Purchased additional...
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at...
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June. Ming Chen (the owner) completed these transactions. a. Owner invested $61.000 cash in the company along with equipment that had a $13.000 market value in exchange for its common stock. b. The company paid $3.000 cash for rent of office space for the month. c. The company purchased $18.000 of additional equipment on credit (payment due within...
11. Jason Repair Company incurred $1.500 as an advertising expense and promised to pay the advertising agency within 30 days. The company is a sole proprietorship. Which of the following will decrease as a result of this transaction? A) Assets B) Jason, Capital C) Liabilities D) Revenues 12. Montgomery Equipment Rental Company received $1,000 cash from a customer, the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation?...
8. Precision Camera Services started the year with total assets of $110,000 and total liabilities of $45,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $120,000 and $90,000, respectively. During the year, there were no new capital contributions and the owner withdrew $50,000. What is the amount of owner's equity at the end of the year? A) $90,000 B) $120.000 C) $45.000 D) $50.000 9. Metropolitan Casting Services started the year with...
14) Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of Mitchell? A) assets and equity decrease B) liabilities increase and equity decreases C) assets and liabilities increase D) liabilities and equity increase -3- 15. Country Homes Company just recorded a transaction in its books. If this transaction increased the total liabilities by $12.000,...
Springer Company, a sole proprietorship, had the following transactions in August Earned $4,000 of revenues on account, collected $4,000 from a customer for services provided last month; incurred $500 of repair expense and paid cash paid $500 for rent that it owed from the previous month. What is the net income in August? O A. $7,500 O B. $3,500 O C. $4,000 O D. $500 Click to select your answer G 1 6:06 PM /18/2020
13. Diamond Company had the following transactions during June Performed services for $5,000 on account; received cash on account, $7,000; paid $600 for repair expense; paid $2,000 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June transactions? A) $4,400 increase B) $4,400 decrease C) $7,000 increase D) $2,600 decrease 14) Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier...
10. Expenses incurred but not yet paid or recorded are called a. prepaid expenses. accrued expenses. c. interim expenses. d. unearned expenses PROBLEM 1 (20 PTS.) Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. The owner, P. West, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased supplies for $1,000 cash. 3. Purchased equipment for $15,000, paying $5,000...
a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. b. The company paid $1,500 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for...
Current Attempt in Progress Selected transactions for Thyme Advertising Company, Inc. are listed here. Describe the effect of each transaction on assets, liabilities, and stockholders' equity. 1. 2. 3. Issued common stock to investors in exchange for cash received from investors. Paid monthly rent Received cash from customers when service was performed. Billed customers for services performed. Paid dividend to stockholders. 4. 5. 6. Incurred advertising expense on account. 7. 8. Received cash from customers billed in (4). Purchased additional...
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June. Ming Chen (the owner) completed these transactions. a. Owner invested $61.000 cash in the company along with equipment that had a $13.000 market value in exchange for its common stock. b. The company paid $3.000 cash for rent of office space for the month. c. The company purchased $18.000 of additional equipment on credit (payment due within...
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