Chapter2 - (5-10 min.) S 2-5a.Purchase of asset for...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: (5-10 min.) S 2-5a.Purchase of asset for cashSale of asset for cashCollection of an account receivableb.Payment of dividends to ownersExpense transactionc.Pay a liabilityd.Issuance of stockRevenue transactione.Purchase of asset on accountBorrow money(10-15 min.) E 2-15Aa.No effect on total assets. Increase in cash offsets the decrease in accounts receivable.b.No effect (a personal transaction)c.No effect on total assets. Increase in cash offsets the decrease in land.d.Increased assets (cash)e.No effect on total assets. Increase in land offsets the decrease in cash.f.Increased assets (cash)g.Decreased assets (cash)h.Increased assets (equipment)i.Increased assets (merchandise inventory)j.Decreased assets (cash)(10-20 min.) E 2-16AReq. 1Analysis of TransactionsASSETS = LIABILITIES + STOCKHOLDERS EQUITYDateCash +AccountsReceivable + MedicalSupplies +Land =Accounts Payable +NotePayable +CommonStock +RetainedEarningsType of StockholdersEquity TransactionMar. 642,00042,000Issued stock9(25,000)25,001216,00016,00015Not a transaction of the business.15-313,8503,8507,700Service revenue15-31(900)(900)Salary expense(900)(900)Rent expense(200)(200)Utilities expense31200(200)3118,00018,31(1,100) (1,100)Bal.35,9503,85015,80025,0014,90018,42,0005,70080,60080,600(10-20 min.) E 2-18AJournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDITApr. 1Cash19,100Common Stock...19,100Issued common stock to owner.2Office Supplies300Accounts Payable..300Purchased office supplies on account.4Land14,700Cash..14,700Paid cash for land.6Cash2,700Service Revenue2,700Performed services for cash.9Accounts Payable...200Cash.....
View Full Document

Page1 / 17

Chapter2 - (5-10 min.) S 2-5a.Purchase of asset for...

This preview shows document pages 1 - 5. Sign up to view the full document.

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