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Chapter 1 HWPDFF

The document outlines various accounting exercises, including identifying assets, liabilities, and owner's equity, as well as analyzing business transactions. It includes instructions for preparing financial statements such as income statements, owner's equity statements, and balance sheets based on given transactions. Specific examples of transactions are provided to illustrate the impact on the accounting equation and financial reporting.

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12 views4 pages

Chapter 1 HWPDFF

The document outlines various accounting exercises, including identifying assets, liabilities, and owner's equity, as well as analyzing business transactions. It includes instructions for preparing financial statements such as income statements, owner's equity statements, and balance sheets based on given transactions. Specific examples of transactions are provided to illustrate the impact on the accounting equation and financial reporting.

Uploaded by

dourachan1234
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BE 1-5 Indicate whether each of the following items is an asset (A), liability (L), or part of

owner's equity (OE).


(a) Accounts receivable (d) Supplies
(b) Salaries and wages payable (e) Owner's capital
(c) Equipment (f) Notes payable

BEI-6 Presented below are three business transactions. On a sheet of paper, list the letters (a),
(b), and (c) with columns for assets, liabilities, and owneds equity. For each column, indicate
whether the transactions increased (+), decreased (—), or had no effect (NE) on assets,
liabilities, and owner's equity.
(a) Purchased supplies on account.
(b) Received cash for performing a service. (c) Paid expenses in cash.
Analyze transactions and PI-2A Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash
prepare income statement, $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200,
owner's equity statement, and and Owner's Capital $8,800. During August, the following transactions occurred.
balance sheet.
1. Collected $1 ,200 of accounts receivable.
2. Paid $2,800 cash on accounts payable.
3. Recognized revenue of $7,500 of which $3,000 is collected in cash and the balance is due in September.
4. Purchased additional equipment for $2,000, paying $400 in cash and the balance on account.
5. Paid salaries $2,500, rent for August $900, and advertising expenses $400.

Problems: Set A 41

6. Withdrew $700 in cash for personal use.


7. Received $2,000 from Standard Federal Bank—money borrowed on a note payable.
8. Incurred utility expenses for month on account $270.
Instructions
(a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (a) Total assets $16,800
The column headings should be as follows: Cash + Accounts Receivable + Supplies +
Equipment = Notes Payable + Accounts Payable + Owner's Capital — Owner's
Drawings + Revenues — Expenses.
A . income statement for August. B. Owner’s equity statement.

C. Balance sheet as of August 31. Liabilities and owner’s equity.


PI-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May I, 2017. Analyze transactions and The
following transactions occurred during the month of May. prepare financial statements. May
1 a Trixie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $5,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on May
15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account. 30
Paid $275 for utilities.
Instructions
(a) Show the effects of the previous transactions on the accounting equation using the (a) Total assets $20,800 following
format.

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