fin-acctg7-sm-ch02 - Chapter 2 Transaction Analysis Short...

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Unformatted text preview: Chapter 2 Transaction Analysis Short Exercises (5 min.) S 2-1 Staass payment was not an expense. Staas acquired an asset , Equipment, because the computer is an economic resource of the business. (5 min.) S 2-2 a. $12,000 ($10,000 + $2,000 + $5,000 $5,000) b. $ 2,000 Chapter 2 Transaction Analysis 49 (5-10 min.) S 2-3 Cash 25,000 4,000 2,000 Bal. 23,000 (5 min.) S 2-4 Increased total assets: June 1 (Cash) June 1 (Medical supplies) June 3 (Cash, Accounts receivable) Financial Accounting 7/e Solutions Manual 50 (10 min.) S 2-5 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. 15 Cash 25,000 Note Payable 250,000 Borrowed money from the bank. 22 Accounts Receivable. 9,000 Service Revenue. 9,000 Performed service on account. 28 Cash 6,000 Accounts Receivable. 6,000 Received cash on account. 29 Utilities Expense. 600 Accounts Payable.. 600 Received utility bill. 31 Salary Expense 3,000 Cash 3,000 Paid salary expense. Chapter 2 Transaction Analysis 51 (10-15 min.) S 2-6 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Supplies.. 5,000 Accounts Payable 5,000 Purchased supplies on account. Accounts Payable 3,000 Cash 3,000 Paid cash on account. Req. 2 Accounts Payable 3,000 5,000 Bal. 2,000 Req. 3 The business owes $2,000, as shown in the Accounts Payable account. Financial Accounting 7/e Solutions Manual 52 (10-15 min.) S 2-7 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Accounts Receivable.. 4,000 Service Revenue.. 4,000 Performed service on account. Cash. 2,500 Accounts Receivable.. 2,500 Received cash on account. Req. 2 Cash Accounts Receivable Service Revenue 2,500 4,000 2,500 4,000 Bal. 2,500 Bal. 1,500 Bal. 4,000 Chapter 2 Transaction Analysis 53 (10 min.) S 2-8 Old Navy Trial Balance December 31, 20X8 ACCOUNT DEBIT CREDIT Millions Cash.... $ 8 Other assets.. 9 Accounts payable $ 1 Other liabilities. 2 Stockholders equity.. 2 Revenues... 36 Expenses... 24 ___ Total. $41 $41 Old Navys net income: $12 million ($36 $24) (10 min.) S 2-9 1. Total assets = $95,000 ($6,000 + $13,000 + $4,000 + $22,000 + $50,000) 2. Total liabilities = $39,000 ($19,000 + $20,000) 3. Net income = $38,000 ($70,000 $21,000 $10,000 $1,000) Financial Accounting 7/e Solutions Manual 54 (10 min.) S 2-10 1. Total debits = $ 82,000 ($127,000 + $5,000 $50,000)...
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This note was uploaded on 12/07/2009 for the course ACCOUNTING 110 taught by Professor Mcwilliams during the Spring '09 term at San Jose State University .

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fin-acctg7-sm-ch02 - Chapter 2 Transaction Analysis Short...

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