Mgmt 200 Assignment Soln 1-19-11

Mgmt 200 Assignment Soln 1-19-11 - 2,000 ( Purchase office...

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Management 200 – Introductory Financial Accounting– Spring 2011 Krannert School of Management - Purdue University Solutions to class assignment for January 19, 2011 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. Exercise 2-15 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) Storage Containers 8,000 Cash 8,000 ( Purchase storage containers ) (4) No entry (5) Cash 12,000 Rental Revenue 12,000 ( Receive cash for current month’s rent )
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(6) Office Supplies 2,000 Accounts Payable
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Unformatted text preview: 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) 32,000 12,000 8,000 6,000 (3) (7) 32,000 (1) 30,000 32,000 Land Notes Payable (2) 19,000 19,000 (2) 19,000 19,000 Storage Containers Rental Revenue (3) 8,000 12,000 (5) 8,000 12,000 Office Supplies Accounts Payable (6) 2,000 2,000 (6) 2,000 2,000 Salaries Expense (7) 6,000 6,000 Requirement 3: Trial Balance Account Title Debit Credit Cash $30,000 Office supplies 2,000 Land 19,000 Storage containers 8,000 Accounts payable $ 2,000 Notes payable 19,000 Common stock 32,000 Rental revenue 12,000 Salaries expense 6,000 Totals $65,000 $65,000...
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This note was uploaded on 02/27/2012 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt 200 Assignment Soln 1-19-11 - 2,000 ( Purchase office...

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