module 2.1 - Walk me through a similar problem Hem ID must...

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Unformatted text preview: Walk me through a similar problem Hem ID must on union. Is this an asset, liability, or owners' equity account? Asset Liability Dwners' Equity X Actually, Cost ofSales, like all expenses, is an owners' equity account. Revenue and expense accounts flow into Retained Earnings on the balance sheet. Once you classify each account as an asset liability, or owners' equity account. you will be preparedto treat each account properly within the accounting system. —. Cash Wages Payable Wages Expense Retained Earnings Accounts Receivable Supplies Service Revenue Cast of Sales Asset Liability Owners' Equity Owners' Equity Asset Asset Owners' Equity Owners' Equity |-c-'.'1l:.-'..'.l' Done 0 lntemet| Protected Mode: On c}; v 6110095 r 9 Learning Exmisefmndaws fiat-12ml:er ‘I I. -I- 1' I I Walk me through a similar problem h Asset Liability Dwners'Equity Income Statement X Actually, Wages Expense, like all expenses, is an owners' + REVENUE equity account. Let's review how revenues and expenses flow ' Expenses through Dwners' Equity. = Net Income Balance Sheet When a company sells goods or performs services, it earns “Ii—‘53:??? revenues. In orderto earn these revenues, the company also 0'3 "t'B,5E . _ incurs a number ofexpenses. wners CIU'W- Common Stock Revenue minus expenses equals netincome forthe company. _. RatamEd Earnings, Any net income not paid out in the form of dividends is addedto retained earnings. *Retained Earnings: + Beginning Retained Earnings + Net Incnme - Dividends = Ending Retained Earnings Retained Earnings is an Dwners' Equity account, and because Revenues and Expenses flow through Retained Earnings, they are also Dwners' Equity accounts. Continue l l-c-T'Jl Done 0 Internei| Protected Made: [In {a ' 9.190% ' Walk me through a similar problem Asset Liability Dwners' Equity )( Actually, Service Revenue is an cwners' equity account. Revenue and expense accounts flow into Retained Earnings on the balance sheet. Next is Cost ofSales. Is this an asset, liability, or owners' equity account? 0 Owners' Equity - Answer I Cash Wages Payable Wages Expense Retained Earnings Accounts Receivable Supplies Service Revenue Cast bf Sales Asset Liability Owners' Equity Owners' Equity Asset Asset Owners' Equity l-c-t'ilrzm' o lntemet| Pmtected Mode: On Accounting Equation Thuhlay 122011 :? Exercise 1 ulup—uunll “me-mm“. m Cash v se classifythe following accounts as Assets, Liabilities, or ~m— ers' Equity accounts: Accounts Payable Liabilities v Perfect! Common Stock Owners-Equity 7 You have completed all ofthe Learning Exercises in this set. Sales Revenue Owners; Equity 7 Please close this window and proceedto the next part ofthe —— Module. 5: Cost ofGoods Solo OwnersaEqu-w v ' 3 Accounts Receivable Assets V Equipment Assets ' Wages Expense Owners' Equity ' Wages Payable Liabilities ' —ill I I Well: me through rt similar problem Check Answer O 1ntemet i Protected Metre: On {‘3 v H 9.100% v a hflpsffd ms.dewy.edufdnEJWebPagfiffEasiv'contentfsmdentfleamingEuercbeas a kid“ ' 1.1 px'kou rseID:5068004&userID-:51594995£d§slfl=1395lloletype=STU DStcou a I ‘7 Accounting Equation Wmm Jones I ThuMay 122cm '1 '2] Exercise 1 I Please describe howthe following transaction afiects I the accounting equation: Issued Common Stockfor Cash Assets = Liabilities + Owners Equity ! 'llncrease IV |No change IV | |lncrease '7 | Right! Assets increase because Cash increases and Owners' the approanme effect “or” the dmp'now" lists provided' Equity increases because Common Stock increases. Please proceedto the next Learning Exercise. m Clo-s: I I Walk mrr t'hwugh :- similar problem Check Answer Done '0 internatiprotectedmdem {i v 3.100% v r a Learning Exemise’andcvws fidfixpgmg : j - “- i I I _ -——. _ it; Walk me through a similar problem ncmua uualulualca. -- Is this an asset, liability, or owners' equity account? Asset Liability Cash Asset Wages F'ayable Liability Wages Expense Owners' Equity Retained Earnings Owners' Equity Accounts Receivable Asset Supplies Asset Service Revenue Owners' Equity Dwners' Equity X Actually, Cost ofSales, like all expenses, is an owners' equity account. Revenue and expense accounts flow into Retained Earnings on the balance sheet. Cost of Sales Owners' Equity Once you classify each account as an asset, liability, or owners' equity account. you will be preparedto treat each account properly within the accounting system. —. l l-c-t'ilrzm' Done 0 lntemet| Protected Mode: On (a- ' 9.190% ' a hflpsffdmsdeuryxdufdnEJWebPagfiffEachontentfsmdentfleamingEuercbeaspxkourseID:5068004&userID:51594995£dsslfl=13951mletype=STUDStcou a I ‘7 Accounting Equation Wmnick Jones I ThuMay 12 2mm Exercise 2 I Please describe howthe following transaction afiects I the accounting equation: Purchased Supplies for Cash Assets = Liabilities + Owners Equity NoChange "' NoChange “ NoChange " | | | | i | l | Great! Supplies increase and Cash decreases bythesame amount, sototal Assets remain unchanged. You have completed a“ ofthe Learning Exercises in this set Select the appropriate effect from tile-:lrop-down lists provided. Please close this window and proceedto the nerd part ofthe Module. 3 a Close I I Walk mrr t'hruugh :- similar problem Check Answer Done '0 internatihotectedmdem {i v aloe-9c. v ...
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This note was uploaded on 04/07/2012 for the course ACC 515 taught by Professor Willaims during the Spring '12 term at Keller Graduate School of Management.

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module 2.1 - Walk me through a similar problem Hem ID must...

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