1) The company previously purchased equipment in a previous accounting period for a cost of $758,164....
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1) The company previously purchased equipment in a previous accounting period for a cost of $758,164. When purchased, the equipment had an expected life of 22 years. Describe the effects of this transaction on the accounting equation in terms of debits and credits Assets 758.164 Prepare the appropriate journal entry for this transaction Account Name Property, Plant, & Equipment Cash Liabilities Equity 758,164 Debit Credit 758,164 758,164 52) The company paid $2,688 for insurance on November 30 for the following twenty four months. 5 Describe the effects of this transaction on the accounting equation in terms of debits and credits 3 Assets 2.688 2.688 Prepare the appropriate journal entry for this transaction Account Name Prepaid Insurance Cash Liabilities Debit Credit 2,688 $ 2,688 + Equity 33) The company previously took out a loan from a bank that has a principal balance of $58,966 with an annual interest rate of 5.8%. The company makes an annual payment on this loan every year on February 28. Describe the effects of this transaction on the accounting equation in terms of debits and credits 2 Assets = 5 Prepare the appropriate journal entry for this transaction Account Name Liabilities Debit Credit 2 4) The company has $16,827 of supplies remaining on hand as of December 31. B Describe the effects of this transaction on the accounting equation in terms of debits and credits 5 Assets 5 B Prepare the appropriate journal entry for this transaction 1 B Liabilities Account Name Supplies Expense Debit $ Credit 16,827 Supplies $ 16,827 + Equity + Equity 1) The company previously purchased equipment in a previous accounting period for a cost of $758,164. When purchased, the equipment had an expected life of 22 years. Describe the effects of this transaction on the accounting equation in terms of debits and credits Assets 758.164 Prepare the appropriate journal entry for this transaction Account Name Property, Plant, & Equipment Cash Liabilities Equity 758,164 Debit Credit 758,164 758,164 52) The company paid $2,688 for insurance on November 30 for the following twenty four months. 5 Describe the effects of this transaction on the accounting equation in terms of debits and credits 3 Assets 2.688 2.688 Prepare the appropriate journal entry for this transaction Account Name Prepaid Insurance Cash Liabilities Debit Credit 2,688 $ 2,688 + Equity 33) The company previously took out a loan from a bank that has a principal balance of $58,966 with an annual interest rate of 5.8%. The company makes an annual payment on this loan every year on February 28. Describe the effects of this transaction on the accounting equation in terms of debits and credits 2 Assets = 5 Prepare the appropriate journal entry for this transaction Account Name Liabilities Debit Credit 2 4) The company has $16,827 of supplies remaining on hand as of December 31. B Describe the effects of this transaction on the accounting equation in terms of debits and credits 5 Assets 5 B Prepare the appropriate journal entry for this transaction 1 B Liabilities Account Name Supplies Expense Debit $ Credit 16,827 Supplies $ 16,827 + Equity + Equity
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Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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