Opt_Prob_Solutions_chap_3_Solutions

Opt_Prob_Solutions_chap_3_Solutions - Chapter 3 Optional...

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Chapter 3 Optional Problem Solutions E3–7. (in millions) a. Cash (+A) . ............................................................................ 185 Short-term notes payable (+L) . ....................................... 185 Debits equal credits. Assets and liabilities increase by the same amount. b. Cash (+A) . ............................................................................ Accounts receivable (+A) . .................................................... 8,035 21,300 Service revenue (+R, +SE) . ............................................. 29,335 Debits equal credits. Revenue increases retained earnings (part of stockholders' equity). Stockholders' equity and assets increase by the same amount. c. Plant and equipment (+A) . .................................................... 530 Cash ( - A) . ......................................................................... 530 Debits equal credits. Assets increase and decrease by the same amount.
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E3–7. (continued) d. Inventory (+A) . ...................................................................... 23,836 Accounts payable (+L) . ..................................................... 23,836 Debits equal credits. Assets and liabilities increase by the same amount. e. Payroll expense (+E, - SE) . ................................................... 3,102 Cash ( - A) . ......................................................................... 3,102
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Opt_Prob_Solutions_chap_3_Solutions - Chapter 3 Optional...

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