Chapter 3 Homework Solutions

Chapter 3 Homework - Chapter 3 Homework LO 3 EXERCISE 3-3 THE EFFECT OF TRANSACTIONS ON THE ACCOUNTING EQUATION 1 2 3 4 5 6 7 8 9 Assets NE I I D

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 Homework LO 3 EXERCISE 3-3 THE EFFECT OF TRANSACTIONS ON THE ACCOUNTING EQUATION Assets = Liabilities + Owners’ Equity 1. NE NE NE 2. I NE I 3. I NE I 4. D D NE 5. NE NE NE 6. I I NE 7. D NE D 8. D NE D 9. I NE I LO 3 EXERCISE 3-4 TYPES OF TRANSACTIONS Type Example 1. a. Purchase supplies on credit. b. Purchase land in exchange for promissory note. 2. a. Issuance of stock in exchange for cash. b. Provide service in exchange for cash. 3. a. Repay bank loan with cash. b. Pay supplier amount owed on open account. 4. a. Pay dividend to stockholders. b. Pay wages to employees. 5. a. Collect amount owed from customer on open account. b. Purchase equipment with cash. 3-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
CHAPTER 3 • PROCESSING ACCOUNTING INFORMATION 3-2 LO 5 EXERCISE 3-6 NORMAL ACCOUNT BALANCES 1. Debit 7. Credit 2. Debit 8. Debit 3. Credit 9. Credit 4. Credit 10. Debit 5. Debit 11. Debit 6. Credit LO 7 EXERCISE 3-8 TRIAL BALANCE SPENCER CORPORATION TRIAL BALANCE DECEMBER 31, 2007 Dr. Cr. Cash. ............................................................................. $ 10,500 Accounts Receivable. .................................................... 5,325 Office Supplies. ............................................................. 500 Land. .............................................................................. 50,000 Automobiles. .................................................................. 9,200 Buildings. ....................................................................... 150,000 Equipment. .................................................................... 85,000 Accounts Payable. ......................................................... $ 7,650 Income Taxes Payable. ................................................. 2,500 Notes Payable. .............................................................. 90,000 Capital Stock. ................................................................ 100,000 Retained Earnings. ........................................................ 110,025 Commissions Revenue. ................................................ 12,750 Interest Revenue. .......................................................... 1,300 Commissions Expense. ................................................. 2,600 Heat, Light, and Water Expense. .................................. 1,400 Income Tax Expense. .................................................... 1,700 Office Salaries Expense. ............................................... 6,000 Dividends. ...................................................................... 2,000 Totals. ...................................................................... $324,225 $324,225
Background image of page 2
CHAPTER 3 • PROCESSING ACCOUNTING INFORMATION 3-3 LO 3,4,5 EXERCISE 3-11 DETERMINING AN ENDING ACCOUNT BALANCE Cash 2,000 1,350 1,400 250 3,650 1,350 Bal. 2,300 LO 3,4,5 EXERCISE 3-12 RECONSTRUCTING A BEGINNING ACCOUNT BALANCE Beginning balance + Services on account – Collections = Ending balance Beginning balance + $7,500 – $6,000 = $2,500 Beginning balance = $1,000
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2008 for the course ACCT Intro to f taught by Professor Dunno during the Spring '08 term at University of Iowa.

Page1 / 11

Chapter 3 Homework - Chapter 3 Homework LO 3 EXERCISE 3-3 THE EFFECT OF TRANSACTIONS ON THE ACCOUNTING EQUATION 1 2 3 4 5 6 7 8 9 Assets NE I I D

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online