HW_2_Answers - (10-15 min.) a. b. c. d. e. f. g. h. i. j. E...

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(10-15 min.) E 2-15 a. 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) Chapter 2 Transaction Analysis 49
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(10-20 min.) E 2-16 Req. 1 Analysis of Transactions ASSETS = LIABILITIES + STOCKHOLDERS’ EQUITY Date Cash + Accounts Receivable + Medical Supplies + Land = Accounts Payable + Note Payable + Common Stock + Retained Earnings Type of Stockholders’ Equity Transaction Aug. 6 50,000 50,000 Issued stock 9 (30,000) 30,000 12 2,000 2,000 15 Not a transaction of the business. 15-31 4,000 4,000 8,000 Service revenue 15-31 (1,400) (1,400) Salary expense (1,000) (1,000) Rent expense (300) (300) Utilities expense 31 500 (500) 31 10,000 10,000 31 (1,000 ) (1,000 ) Bal. 30,800 4,000 1,500 30,000 1,000 10,000 50,000 5,300 66,300 66,300 Chapter 2 Transaction Analysis 50
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(continued) E 2-16 Req. 2 a. $66,300 b. $4,000 c. $11,000 ($1,000 + $10,000) d. $55,300 ($66,300 $11,000, or $50,000 + $5,300) e. $5,300 (Revenue, $8,000 minus total expenses of $2,700, equals net income, $5,300.) (10-20 min.) E 2-18 Journal DATE ACCOUNT TITLES AND EXPLANATION
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HW_2_Answers - (10-15 min.) a. b. c. d. e. f. g. h. i. j. E...

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