Exercise 2.3 (Static) Determining the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise 2.3 (Static) Determining the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3 TRANSACTIONS 1. Paid $2,100 for utilities. 2. Performed services for $10,500 on account. 3. Received $6,500 from charge account customers. 4. Paid salaries of $4,500 to employees. 5. Paid $8,000 to a creditor on account. 6. Owner invested $90,000 in the business. 7. Purchased $26,700 of supplies on account. 8. Purchased equipment for $21,000 cash. 9. Paid $6,000 for rent (in advance). 10. Performed services for $7,800 cash. Indicate the impact of each of the transactions on the fundamental accounting equation (Assets = Liabilities Owner's Equity) by placing a "I" to indicate an increase and a "D" to indicate a decrease. The first transaction is entered as an example. Note: If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select I and D. Transaction Assets 1. D = 2. = I and D Owner's Liabilities + Equity + D I + 3. I and D I + 4. D = D + 5. D = 6. I = + + 7. = I > + I and D D D I I and D 8. I and D = 9. I and D = 10. I + + D + Exercise 2.3 (Static) Determining the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3 TRANSACTIONS 1. Paid $2,100 for utilities. 2. Performed services for $10,500 on account. 3. Received $6,500 from charge account customers. 4. Paid salaries of $4,500 to employees. 5. Paid $8,000 to a creditor on account. 6. Owner invested $90,000 in the business. 7. Purchased $26,700 of supplies on account. 8. Purchased equipment for $21,000 cash. 9. Paid $6,000 for rent (in advance). 10. Performed services for $7,800 cash. Indicate the impact of each of the transactions on the fundamental accounting equation (Assets = Liabilities Owner's Equity) by placing a "I" to indicate an increase and a "D" to indicate a decrease. The first transaction is entered as an example. Note: If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select I and D. Transaction Assets 1. D = 2. = I and D Owner's Liabilities + Equity + D I + 3. I and D I + 4. D = D + 5. D = 6. I = + + 7. = I > + I and D D D I I and D 8. I and D = 9. I and D = 10. I + + D +
Expert Answer:
Answer rating: 100% (QA)
Here are the detailed effects of each transaction on the accounting equation 1 Paid 2100 for utiliti... View the full answer
Related Book For
Calculus Early Transcendentals
ISBN: 978-0321947345
2nd edition
Authors: William L. Briggs, Lyle Cochran, Bernard Gillett
Posted Date:
Students also viewed these accounting questions
-
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owners Equity) by placing a + to indicate an increase and a to indicate a...
-
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a "+" to indicate an increase and a "" to indicate a...
-
Consider the exchange rate between South Korea and Costa Rica. Typically, exchange rates vary over time, sometimes quite dramatically. The scenarios present various changes that may affect the...
-
Out of a random sample of 210 parts produced on a production line, 31 fail a quality inspection. Obtain a 99% two-sided confidence interval for the proportion of parts from the production line that...
-
Becky just got a new job as an account executive. Human resources said the job pays 64.5K. What will Beckys weekly salary be to the nearest cent?
-
An often-ignored concept in breach of contract is the availability, if any, of the award of punitive damages. Often, cases incorporate both breach of contract and tort actions. The tort actions...
-
Determining sales and variable cost volume variances Todhunter Publications established the following standard price and costs for a hardcover picture book that the company produces. Todhunter...
-
e3z (i) Find all the poles of the function f (z) = and plot them on 22(22 +22+2) (ii) an Argand diagram. Hence evaluate the integral of (2) dz, writing your solutions in the form a + jb where a and b...
-
Prepare a projected income statement and statement of financial position for the year ending April 30, 2013 if the Calgary Farmers Market alternative is accepted. Put your calculations/financial...
-
Calculate the repricing gap and impact on net interest income of a 1 percent increase in rates for the following: RSA=100 million RSL=50 million RSA=75 million RSL=100 million
-
Last year was a challenging one for Samuel's Snowboards Inc. (SSI), a large private company that manufactures snowboards and skateboards. Competition has increased in the industry and, in the...
-
what is the output that following code fragment produces? String[] Letters = {'A; "B", "C", "D", "E","F"} for (int i = 0; i <3; i++){ System.out.print(Letter[2*1+1]);
-
Erik (52) and Donna (56) are married and filing jointly for 2022. Donna made $102,000 in 2022 and has a retirement plan at work. Erik is unemployed and had no income at all. How much can they...
-
You have a car loan with a nominal rate of 4.95 percent. With interest charged monthly, what is the effective annual rate (EAR) on this loan? (Do not round intermediate calculations. Enter your...
-
Write a paper on Language and Culture: Become a sociolinguist and to consider a common, everyday form of communication. You should pick something you hear every day: greetings, a "sign off" or "good...
-
1. Advertising for eyeglasses _________ (increases/decreases) the price of eyeglasses because advertising promotes _________. 2. An advertisement that succeeds in getting consumers to try the product...
-
An investment has the following cash flow series where interest is 5 percent: a. Determine the present worth of the series. b. Determine the future worth of the series at the end of year 8. c. Find...
-
The manager at a Sherwin-Williams store has decided to purchase a new \($30\),000 paint-mixing machine with hi-tech instrumentation for matching color and other components. The machine may be paid...
-
Develop a single spreadsheet that allows you to calculate any of the P|A, A|P F|A, or A|F factors. For each cell where the calculation is performed, place above it a small control panel that allows...
Study smarter with the SolutionInn App