Ch02a - Exercise 2-2 Assets 1. 2. 3. 4. 5. 6. Increase...

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Exercise 2-2 Assets = Liabilities + Stockholders’ Equity 1. Increase = No effect + Increase 2. Increase = Increase + No effect 3. Increase = No effect + Increase 4. Decrease = No effect + Decrease 5. Decrease = No effect + Decrease 6. No effect * = No effect + No effect * One asset (cash) increases while another asset (accounts receivable) decreases.
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Requirement 1 (1) Debit Credit Cash 32,000 Common Stock 32,000 ( Issue common stock ) (2) Land 19,000 Notes Payable 19,000 ( Purchase land with note payable ) (3) Equipment 8,000 Cash 8,000 ( Purchase storage containers ) (4) No entry
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(5) Cash 12,000 Service Revenue 12,000 ( Receive cash for current month’s rent ) (6) Supplies 2,000 Accounts Payable 2,000 ( Purchase office supplies on account ) (7) Salaries Expense 6,000 Cash 6,000 ( Pay salaries for the current month ) Requirement 2 Cash Common Stock (1) (5) 0 32,000 12,000 8,000 6,000 (3) (7) 0 32,000 (1) 30,000 32,000
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Notes Payable (2) 0 19,000 0 19,000 (2) 19,000 19,000 Equipment Service Revenue (3) 0 8,000 0 12,000 (5) 8,000 12,000 Supplies Accounts Payable (6) 0 2,000 0 2,000 (6) 2,000 2,000 Salaries Expense (7) 0 6,000 6,000
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This note was uploaded on 02/23/2012 for the course MGMT 200 taught by Professor Greigg during the Summer '08 term at Purdue University-West Lafayette.

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Ch02a - Exercise 2-2 Assets 1. 2. 3. 4. 5. 6. Increase...

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