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 Purchase asset pay cash; Sell asset collect cash; Collect account receivable D. Assets = Liabilities + Equity Pay cash dividend; Pay expense in cash E. Assets = Liabilities + Equity Pay a liability F. Assets = Liabilities + Equity 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. 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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Chapter 2 – Page 3 of 20 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. E 750 (750) F 2,000 2,000 Service rev. G 5,000 5,000 Sold stock H (1,200) (1,200) Rent exp. I (660) (660) Advert. exp. J (2,400) (2,400) Dividends ¿ 45,810 5,590 2,000 19,100 1,000 5,000 52,000 14,500
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Chapter 2 – Page 4 of 20 Prepare the income statement, statement of retained earnings and balance sheet for April 2015. Complete the statements first manually then using Excel. The statements will be the calculation range.
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