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ACC110:Spring 2018-Intro to Financial REporting
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Chapter 2
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Chapter 2 Homework
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QUESTION
6
Correct
Mark 214.00 out of 214.00
Transaction Analysis and Trial Balance
Pam Brown owns Art Graphics, a firm providing designs
for advertisers and market analysts. On July 1, the
business’s general ledger showed the following normal
account balances:
Cash
$6,800
Accounts Payable
$2,100
Accounts
Receivable
9,800
Notes Payable
3,300
Common Stock
2,000
Retained Earnings
9,200
Total Assets
$16,600
Total Liabilities and
Stockholders' Equity
$16,600
The following transactions occurred during the month of
July:
July
1
Paid July rent, $510.
2
Collected $7,100 on account from customers.
3
Paid $1,800 installment due on the $3,300
noninterest-bearing note payable.

4
Billed customers for design services rendered on
account, $16,550.
5
Rendered design services and collected from cash
customers, $1,200.
6
Paid $1,400 to creditors on account.
7
Collected $12,750 on account from customers.
8
Paid a delivery service for delivery of graphics to
commercial firms, $650.
9
Paid July salaries, $4,600.
10
Received invoice for July advertising expense, to be
paid in August, $600.


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