a. For each transaction listed below, state whether the transaction would increase (I), decrease (D), or...

Transcribed Image Text:

a. For each transaction listed below, state whether the transaction would increase (I), decrease (D), or have no effect (NE) on Jasmine Corporation's total assets, total liabilities, and total owners' equity, at December 31, 2022 and on its net income for 2022. Transactions Assets Liabilities Owners' Equity Net Income i. On December 31st, Jasmine issued a $5,000 non-interest bearing, 90-day note ii. On December 31st, Jasmine declared and paid $2,000 in dividends. iii. On December 31st, Jasmine received $300 on account. iv. On December 31st, Jasmine paid salaries and wages of $800 to its employees. b. For each error listed below, state whether the error would overstate (O/S), understate (U/S), or have no effect (NE) on Jasmine Corporation's total assets, total liabilities, and total owners' equity at December 31, 2022, and on its net income for 2022. Transactions i. On December 31st, Jasmine forgot to record a journal entry to reduce Prepaid Rent for the $600 that had expired ii. On December 31st, Jasmine provided $2,000 of services on account and recorded the transaction with a $2,000 debit to Accounts Payable and a $200 credit to Service Revenue iii. On December 31st, Jasmine recorded its $1,000 purchase of supplies on account with a debit to Supplies for $1,000 and a credit to Accounts Payable for $100. The supplies were still on hand at December 31st. Assets Liabilities Owners' Net Equity Income a. For each transaction listed below, state whether the transaction would increase (I), decrease (D), or have no effect (NE) on Jasmine Corporation's total assets, total liabilities, and total owners' equity, at December 31, 2022 and on its net income for 2022. Transactions Assets Liabilities Owners' Equity Net Income i. On December 31st, Jasmine issued a $5,000 non-interest bearing, 90-day note ii. On December 31st, Jasmine declared and paid $2,000 in dividends. iii. On December 31st, Jasmine received $300 on account. iv. On December 31st, Jasmine paid salaries and wages of $800 to its employees. b. For each error listed below, state whether the error would overstate (O/S), understate (U/S), or have no effect (NE) on Jasmine Corporation's total assets, total liabilities, and total owners' equity at December 31, 2022, and on its net income for 2022. Transactions i. On December 31st, Jasmine forgot to record a journal entry to reduce Prepaid Rent for the $600 that had expired ii. On December 31st, Jasmine provided $2,000 of services on account and recorded the transaction with a $2,000 debit to Accounts Payable and a $200 credit to Service Revenue iii. On December 31st, Jasmine recorded its $1,000 purchase of supplies on account with a debit to Supplies for $1,000 and a credit to Accounts Payable for $100. The supplies were still on hand at December 31st. Assets Liabilities Owners' Net Equity Income

Answer rating: 100% (QA)

a i Issuing a noninterest bearing 90day note would increase total assets and total liabilities with no effect on total owners equity at December 31 20... View the full answer