Acct151 Chapter 3 HW

Acct151 Chapter 3 HW - Taylor Foxworth Acct151-Smith Ch3 HW E3,E6,E8,E11,E12,P7,P8,P9,P10,D6 E3 Transactions 1 Equipment is purchased for cash

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Taylor Foxworth, Acct151-Smith, Ch3 HW E3,E6,E8,E11,E12,P7,P8,P9,P10,D6 E3.) Transactions Assets = Liabilities + Stockholder’s Equity 1. Equipment is purchased for cash Cash down, Equipment up (I,D) NE NE 2. Services are provided to customers on account I NE I 3. Services are provided to customers in exchange for cash I NE I 4. An account payable is paid off D D NE 5. Cash is collected on an account receivable I, D NE NE 6. Buildings are purchased in exchange for a three-year note payable I I NE 7. Advertising bill for the month is paid D NE D 8. Dividends are paid to stockholder’s D NE D 9. Land is acquired by issuing shares of stock to the owner of the land I NE I E6.) Account Normal Balance 1. Cash Debit 2. Prepaid insurance Debit 3. Retained earnings Credit
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4. Bonds payable Credit 5. Investments Debit 6. Capital Stock Credit 7. Advertising Fees Earned Debit 8. Wages and salaries expense Debit 9. Wages and salaries payable Credit 10. Office supplies Debit 11. Dividends Debit E8.) Spencer Corporation Trial Balance December 30, 2008 Account Debits Credits Assets Cash $ 10,500 Accounts receivable 5,325 Automobiles 9,200 Buildings 150,000 Land 50,000 Equipment 85,000 Office supplies 500 Liabilities Accounts payable $ 7,650 Income taxes payable 2,500 Notes payable 90,000 Stockholders’ equity Capital stock 100,000 Retained earnings 110,025
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Revenues Commissions revenue 12,750 Interest revenue 1,300 Expenses Commisions expense 2,600 Heat, light, and water expense 1,400 Income tax expense 1,700 Office salaries expense 6,000 Dividends Dividends 2,000 Totals $324,225 $324,225 E11.) Cash Increases Decreases Investment from owners $2,000 Supplies bought $600 Services for cash $1,400 Equipment bought $1,350 Services on account collected $250 Balance $1,700 E12.) If services preformed for customers on account amounted to $7,500, and $6,000 was collected, then
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This note was uploaded on 02/12/2009 for the course ACCT 151 taught by Professor Largay during the Spring '07 term at Lehigh University .

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Acct151 Chapter 3 HW - Taylor Foxworth Acct151-Smith Ch3 HW E3,E6,E8,E11,E12,P7,P8,P9,P10,D6 E3 Transactions 1 Equipment is purchased for cash

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