Chapter 2 Homework.pdf - My Subscriptions Courses ACC110:Spring 2018-Intro to Financial REporting Chapter 2 Chapter 2 Homework Started on Saturday 3

# Chapter 2 Homework.pdf - My Subscriptions Courses...

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My Subscriptions / Courses / ACC110:Spring 2018-Intro to Financial REporting / Chapter 2 / Chapter 2 Homework Started on Saturday, 3 February 2018, 6:14 PM State Finished Completed on Saturday, 3 February 2018, 7:29 PM Time taken 1 hour 15 mins Marks 312.00/312.00 Grade 100.00 out of 100.00 QUESTION 1 Correct Mark 7.00 out of 7.00 Normal Balances Indicate for each of the following accounts whether the normal balance is a debit or a credit a. Accounts Receivable Debit b. Accounts Payable Credit c. Dividends Debit d. Wage Expense Debit e. Inventory Debit f. Interest Income Credit g. Retained Earnings Credit CLICK HERE TO REVIEW LEARNING OBJECTIVES ± CLICK HERE TO REVIEW LEARNING OBJECTIVES ±
QUESTION 2 Correct Mark 20.00 out of 20.00 Recording Transactions with the Accounting Equation During the year, the Decker Company experienced the following accounting transactions: 1. Issued common stock in the amount of \$100,000 2. Paid a \$30,000 cash dividend 3. Borrowed \$25,000 from a bank 4. Made a principal payment of \$2,500 on an outstanding bank loan 5. Made an interest payment of \$1,200 on an outstanding bank loan Using the accounting equation, record each of the transactions in columnar format using the following template: Use negative signs with answers, when appropriate. Assets = Liabilities + Stockholders' Equity Cash = Notes payable + Common stock + Retained earnings 1 \$ 100,000 = \$ 0 + \$ 100,000 + \$ 0 2 \$ (30,000) = \$ 0 + \$ 0 + \$ (30,000) 3 \$ 25,000 = \$ 25,000 + \$ 0 + \$ 0 4 \$ (2,500) = \$ (2,500) + \$ 0 + \$ 0 5 \$ (1,200) = \$ 0 + \$ 0 + \$ (1,200) CLICK HERE TO REVIEW LEARNING OBJECTIVES ±
QUESTION 3 Correct Mark 48.00 out of 48.00 Posting Transactions to T-accounts During the year, the Decker Company experienced the following accounting transactions: 1. Issued common stock in the amount of \$100,000 2. Paid a \$30,000 cash dividend 3. Borrowed \$25,000 from a bank 4. Made a principal payment of \$2,500 on an outstanding bank loan 5. Made an interest payment of \$1,200 on an outstanding bank loan Prepare journal entries and post your transaction analysis to the appropriate T-accounts.

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