Question

Exercise 3-14B

Allected by 000 of sup- Based on this information, determine the amount of cash outflow for expenses during the accounting period. (Hint: Use a T-account for Accounts Payable. Enter the debits and credits for the given events, and solve for the missing amount.) LO 3-2 Exercise 3-14B Recording events in the general journal and identifying their effect on financial statements Required Record each of the following transactions in general journal form and then show the effect of the transaction in the horizontal statements model. The first transaction is shown as an example. sh Flow Account Title Debit Credit Accounts Receivable Service Revenue 50,000 50,000 er. Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow 50,000 NA 50,000 50,000 NA 50,000 NA incial erformed a. Performed $50,000 worth of services on account. b. Charged $2,000 on account for operating expense. c. Collected $27,000 cash on accounts receivable. d. Paid $700 on accounts payable. e. Paid $6.800 cash in advance for an insurance policy. f. Recorded the adjusting entry to recognize $4,500 of insurance expense. g. Received $4.000 cash for services to be performed at a later date. h. Purchased supplies for $2,400 cash. like the LO 3-2 Exercise 3-15B Recording accrued salaries and identifying their effect on financial statements On December 31, Year 1, Zeal Company had accrued salaries of $12,000. Flow

Answer 1

Sr. No. Credit Debit $50,000 Assets $50,000 Liabilities + Equity NA + $50,000 Rev $50,000 Exp NA Net Income $50,000 Cash Flow NA a $50,000 b $2,000 NA $2,000 +-$2,000 NA $2,000 = -$2,000 NA $2,000 с $27,000 SO = NA NA NA NA = NA $27,000 $27,000 d $700 -$700 = -$700 + NA NA NA = NA $700 Account Title Accounts Receivable Service Revenue Operating Expense Accounts Payable Cash Accounts Receivable Accounts Payable Cash Prepaid Insurance Cash Insurance Expense Prepaid Insurance Cash Unearned Service Revenue Supplies Cash $700 $6,800 SO = NA NA NA NA = NA -$6,800 $6,800 f $4,500 -$4,500 = NA -$4,500 NA $4,500 = -$4,500 NA $4,500 $4,000 $4,000 -$4,000 NA NA NA = NA $4,000 $4,000 h $2,400 $O NA NA NA NA NA -$2,400 $2,400