121_02A - Question 1 Give an example of a transaction with...

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Chapter 2 – Page 1 of 20 Question 1 Give an example of a transaction with the following effect. A. Assets = Liabilities + Equity ± ± Purchase asset on account; Borrow cash from bank B. Assets = Liabilities + Equity ± ± Issue stock collect cash; Earn revenue C. Assets = Liabilities + Equity ± ² Purchase asset pay cash; Sell asset collect cash; Collect account receivable D. Assets = Liabilities + Equity ² ² Pay cash dividend; Pay expense in cash E. Assets = Liabilities + Equity ² ² Pay a liability F. Assets = Liabilities + Equity ± ² Incur expense do not pay What did you learn?
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Chapter 2 – Page 2 of 20 Question 2 The transactions for the first month of operations of San Mateo Photography are listed below. Record the transactions in the balance sheet equation. A. Owner invested $35,000 cash in the business by purchasing common stock. B. Paid cash to purchase land, $15,000. C. Purchased supplies on account, $2,000. D. Earned $8,000 for photography services. Collected $2,000 in cash, balance due in 30 days. E. Paid employee salaries in cash, $1,400. F. Paid rent, $1,000. [Note “Paid” means “Paid in cash”] G. Paid utilities bill, $300. H. Sold extra supplies to another photographer and collected $500 in cash. I. Borrowed $10,000 from bank by signing a note payable. J. Paid $1,500 on the amount due for supplies. Assets = Liabilities + Equity Cash Accounts Receivable Supplies Land Accounts Payable Note Payable Common Stock Retained Earnings A 35,000 35,000 Sold stock B (15,000) 15,000 C 2,000 2,000 D 2,000 6,000 8,000 Service rev. E (1,400) (1,400) Salary exp. F (1,000) (1,000) Rent exp. G (300) (300) Util. exp. H 500 (500) I 10,000 10,000 J (1,500) (1,500) ¿ 28,300 6,000 1,500 15,000 500 10,000 35,000 5,300 What did you learn?
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Question 3 Doctor Cooper’s medical corporation has been in business for three years and had the following beginning balances on March 31, 2015. The transactions for April are listed below. Record the transactions in the balance sheet equation. A. Owner invested $42,000 cash in the business by purchasing common stock. B. Purchased supplies on account, $2,000. C. Made partial payment on accounts payable, $1,400. D. Performed services on account, $4,100. E. Collected cash on account, $750. F. Performed services and collected cash, $2,000. G. Signed a note payable at bank and borrowed $5,000. H. Paid rent for the month, $1,200. I. Paid advertising bill for the month, $660. J. Paid cash dividends to shareholders, $2,400. Complete this question first manually then using Excel. The data range will be the table. Assets = Liabilities + Equity Cash Accounts Receivable Supplies Land Accounts Payable Note Payable Common Stock Retained Earnings ¿ 1,720 2,240 19,100 400 10,000 12,660 A 42,000 42,000 Sold stock B 2,000 2,000 C (1,400) (1,400) D 4,100 4,100 Service rev.
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This note was uploaded on 10/24/2010 for the course ACCOUNTING 31609 taught by Professor R.ambrose during the Fall '09 term at San Mateo Colleges.

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121_02A - Question 1 Give an example of a transaction with...

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