ACC 230 - hw 3 - Aaron New ACC 230 Homework 3 (Chapter 3)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Aaron New ACC 230 – Homework 3 (Chapter 3) June 3, 2010 Q2) The first three steps to the accounting cycle is 1) Analyze transactions, 2) Record the effects of transactions, and 3) Summarize the effects of transactions. The fourth sequence is preparing reports. Q4) It shows that both the columns are equally accounted for and also, the entries made through the double-entry system are balance. It forms the basis for the fundamental accounting equation and changes on one side have to have the same change experienced on the other side so as to make the equation balanced. Q6) Retained earnings = revenue – expenses – dividends. Retained earnings falls under owners’ equity and this complies with the fundamental accounting equation. Q11) a) Increase Assets(supplies) and increase liabilities(amount payable) b) Decrease of Assets(cash) and increase in Wages Expense c) Increase Assets(cash) and Increase in Revenue(Sales), decrease Assets(goods) and increase in Cost of goods sold d) Increase in Utility Expense and decrease in Asset(cash)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/12/2011 for the course ACC 230 taught by Professor Staff during the Spring '10 term at Chandler-Gilbert Community College.

Page1 / 2

ACC 230 - hw 3 - Aaron New ACC 230 Homework 3 (Chapter 3)...

This preview shows document pages 1 - 2. Sign up to view the full document.

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