a. In parallel columns, list the accounts that would be debited and credited for each of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: Event Account Debited Account Credited (1) Acquired cash from the issue of common stock. (2) Provided services for cash. (3) Paid cash for salaries expense. (4) Purchased supplies for cash. (5) Paid in advance for two-year lease on office space. (6) Provided services on account. (7) Recognized expense for prepaid rent that had been used up by the end of the accounting period. Rent expense (8) Recognized accrued interest revenue (9) Recorded accrued salaries at the end of the accounting period. Cash Cash Salaries expense Supplies Prepaid rent Accounts receivable Common stock Service revenue Cash Cash Cash Service revenue Prepaid rent Interest revenue Interest receivable Salaries expense Salaries payable b. Show how each transaction affects the financial statements by placing a + for increase, - for decrease, and NA for not affected under each component in a horizontal statements model like the one shown below. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as an example. (In the Cash Flows column, select "NA" if there is no effect.) No. Assets Equity Revenue Net Income Statement of Cash Flows = Liabilities Expenses NA NA NA FA OA (1) + (2) + (3) (4) NA (5) NA (6) + NA NA NA NA NA NA NA OA NA NA NA NA NA NA NA OA v NA [NA NA NA FA NA NA NA NA NA [+ (7)- NA [NA NA NA NA NA NA (8) NA NA NA NA NA NA NA (9) NA NA NA NA a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: Event Account Debited Account Credited (1) Acquired cash from the issue of common stock. (2) Provided services for cash. (3) Paid cash for salaries expense. (4) Purchased supplies for cash. (5) Paid in advance for two-year lease on office space. (6) Provided services on account. (7) Recognized expense for prepaid rent that had been used up by the end of the accounting period. Rent expense (8) Recognized accrued interest revenue (9) Recorded accrued salaries at the end of the accounting period. Cash Cash Salaries expense Supplies Prepaid rent Accounts receivable Common stock Service revenue Cash Cash Cash Service revenue Prepaid rent Interest revenue Interest receivable Salaries expense Salaries payable b. Show how each transaction affects the financial statements by placing a + for increase, - for decrease, and NA for not affected under each component in a horizontal statements model like the one shown below. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as an example. (In the Cash Flows column, select "NA" if there is no effect.) No. Assets Equity Revenue Net Income Statement of Cash Flows = Liabilities Expenses NA NA NA FA OA (1) + (2) + (3) (4) NA (5) NA (6) + NA NA NA NA NA NA NA OA NA NA NA NA NA NA NA OA v NA [NA NA NA FA NA NA NA NA NA [+ (7)- NA [NA NA NA NA NA NA (8) NA NA NA NA NA NA NA (9) NA NA NA NA
Expert Answer:
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
Students also viewed these chemical engineering questions
-
Required a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: (1) Acquired cash from the issue of common stock. (2) Provided...
-
a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: (1) Provided services for cash. (2) Recognized accrued salaries at the...
-
Required a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: (1) Provided services for cash. (2) Recognized accrued salaries...
-
After deducting capital allowances for the year to 31 December 2019, the tax written down values of a company's plant and machinery were as follows: Calculate the capital allowances available for the...
-
At = 0.05, can you support the claim that the proportion of adults in Great Britain who favor building new nuclear power plants in their country is different from the proportion of adults in France...
-
The Whitt Window Company is a company with only three employees that makes two different kinds of handcrafted windows: a wood-framed and an aluminum framed window. They earn $60 profit for each...
-
How are costs of assets that benefit a firm for more than one year allocated? (a) Depreciation. (b) Depletion and amortization. (c) Costs are divided by service lives of assets and allocated to...
-
Mona found a wallet on the floor of an elevator in the office building where she worked. She posted several notices in the building about finding the wallet, but no one appeared to claim it. She...
-
On April 1, 2018, an F-22 Raptor (asset) with an estimated life of 5 years and an estimated salvage value of $27M was acquired. The asset had a cash price of $171M. The fiscal year-end is December...
-
The university computer lab's director keeps track of the lab usage, as measured by the number of students using the lab. This particular function is very important for budgeting purposes. The...
-
A simple electrical circuit consists of a constant resistor R, a constant inductor L, and an electromotive force source E(r). According to Kirchoff's Second Law, the current i in the circuit...
-
A loan of $100,000 is repaid with monthly payments of $1000 at the end of each month, and a smaller final payment one month after the last regular payment, at a nominal interest rate of (12)=0.06....
-
Using the information given here, what is the price-earnings ratio for DEF Company? Number of shares outstanding = 60,000 Price per share = $30 Book value per share = $10 O After-tax income =...
-
Pete tells Alice, his sales agent, that under no circumstances does she have authority to make any warranties covering goods she sells for Pete. No third party knows about Pete's limitation on...
-
Consider the Ryan case and the Supreme Court's decision that a workers' compensation scheme will prohibit a someone from suing in tort if they are injured. Workers' compensation is mandatory for...
-
In the coming year, your company is expected to have sales of $16,000, costs of $6,000, where these costs include depreciation of $2,000 (i.e.. your pre-tax income is 16,000- 6,000) You also need to...
-
Show all steps when solving. A pump uses 2010 3 ftlb (f)/s in order to move water up 150 ft at a rate of 93 lb (m)/s. If there is no change in internal energy of the water from one location to the...
-
At Glass Company, materials are added at the beginning of the process and conversion costs are added uniformly. Work in process, beginning: Number of units Transferred - in costs Direct materials...
-
The accounts receivable balance for Renue Spa at December 31, 2015, was $61,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $3,750. During 2016, $2,100 of accounts...
-
Dan Dayle started a business by issuing an $80,000 face value note to First State Bank on January 1, 2016. The note had an 8 percent annual rate of interest and a five-year term. Payments of $20,037...
-
Talley Inc. experienced the following events in 2016, in its first year of operation: 1. Received $20,000 cash from the issue of common stock. 2. Performed services on account for $38,000. 3. Paid...
-
Honeybees accumulate charge as they fly, and they transfer charge to the flowers they visit. Honeybees are able to sense electric fields; tests show that they can detect a change in field as small as...
-
A platypus foraging for prey can detect an electric field as small as 0.002 N/C. To give an idea of the sensitivity of the platypuss electric sense, how far from a +10 nC point charge does the field...
-
A bumblebee can sense electric fields as the fields bend hairs on its body. Bumblebees have been conclusively shown to detect an electric field of 60 N/C. Could a bumblebee use this sense to detect...
Study smarter with the SolutionInn App