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Chapter three slide 47 of 74 a l se assets debit d bit

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Unformatted text preview: e CONTRIBUTED CAPITAL Debit Credit for for Decrease Increase RETAINED EARNINGS Debit Credit for for Decrease Increase Slide 48 of 74 Expanded Transaction Analysis Model RETAINED EARNINGS Debit Credit for for Decrease Increase Introduction To Financial Accounting HKUST Dividends decrease Retained Earnings. R t i dE i Net Income increases Retained Earnings. RE = NI Dividend = (Rev - Exp) - Dividend REVENUES Debit Credit for for Decrease Increase Chapter Three EXPENSES Debit Credit for for Increase Decrease Slide 49 of 74 Analyzing Papa John's Transaction Introduction To Financial Accounting HKUST Let s Let's apply the complete transaction analysis model to some of Papa John's transactions. All amounts are in thousands of dollars. Chapter Three Slide 50 of 74 Papa John's sold franchises for $400 cash. The company earned $100 immediately. The rest will be earned over several months. Identify & Classify the Accounts Introduction To Financial Accounting HKUST Determine the Direction of the Effect Chapter Three Slide 51 of 74 Papa John's sold franchises for $400 cash. The company earned $100 immediately. The rest will be earned over several months. Introduction To Financial Accounting HKUST GENERAL JOURNAL Date Description Page 1 Debit Credit Chapter Three Slide 52 of 74 The company sold $36,000 of pizzas for cash. The costs of the pizza ingredients for those sales were $9,600. Identify & Classify the Accounts Introduction To Financial Accounting HKUST Determine the Direction of the Effect Chapter Three Slide 53 of 74 The company sold $36,000 of pizzas for cash. The costs of the pizza ingredients for those sales were $9,600. Introduction To Financial Accounting HKUST GENERAL JOURNAL Date Description Page 1 Debit Credit Chapter Three Slide 54 of 74 P3-2 Transaction Analysis Introduction To Financial Accounting HKUST A new company CollegeCaps, Inc. operates a small store in an area mall and specializes in baseball-type caps with logos printed on them. Record the journal entries occurring in the first two weeks of operation. a. b. c. d. e. f. g. h. i. j. Issued 1,000 shares of stock to investors for cash at $30 per share. Borrowed $50,000 from the bank to provide additional funding to begin operations; the note is due in two years. Paid $1,200 for current month's rent and another $1,200 for next month's. Paid $2,400 for 1-year insurance policy (recorded as a prepaid expense). Purchased furniture and fixtures for the store for $15,000 on account. The amount is due within 30 days days. Purchased university logo caps as inventory of store for $1,800 cash. Placed advertisements in local college newspaper for a total of $250 cash. Sold caps totaling $400, half of which was charged on account. The cost of the caps sold was $150. Made full payment for furniture and fixtures purchased on account in (e). Received $50 from a customer on account. Slide 55 of 74 Chapter Three How are Unadjusted Financial Statements Prepared? Introduction To Financial Accounting HKUST After posting all of the January transactions to...
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This note was uploaded on 02/13/2012 for the course ACCT 101 taught by Professor Na during the Fall '10 term at HKUST.

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