2811422509

2811422509 - Chapter 2 Transaction Analysis Check Points (5...

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Unformatted text preview: Chapter 2 Transaction Analysis Check Points (5 min.) CP 2-1 Hickmans payment was not an expense. Hickman acquired an asset, Equipment, because the computer is an economic resource of the business. (5 min.) CP 2-2 a. $12,800 b. $ 3,000 c. $56,300 d. $ 500 Chapter 2 Transaction Analysis 57 e. $ 5,800 [Service revenue of $8,500 ($5,500 + $3,000) Total expenses of $2,700 ($1,100 + $1,200 + $400) = Net income of $5,800] e. $ 500 Financial Accounting 6/e Solutions Manual 58 (5-10 min.) CP 2-3 Cash Accounts Receivable 30,000 4,000 6,000 2,000 Bal. 6,000 Bal. 28,000 (5 min.) CP 2-4 Increased total assets: May 1 (Cash) May 1 (Medical supplies) May 3 (Cash, Accounts receivable) Increased total liabilities: May 1 (Accounts payable) Decreased total assets: May 2 (Cash) Chapter 2 Transaction Analysis 59 (10 min.) CP 2-5 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Apr. 15 Cash 50,000 Note Payable 50,000 Borrowed money from the bank. 22 Accounts Receivable. 9,000 Service Revenue. 9,000 Performed service on account. 28 Cash 6,000 Accounts Receivable. 6,000 Received cash on account. 29 Utilities Expense. 600 Accounts Payable.. 600 Received utility bill. 30 Salary Expense 3,000 Cash 3,000 Paid salary expense. 30 Interest Expense. 300 Cash 300 Paid interest expense. Financial Accounting 6/e Solutions Manual 60 Chapter 2 Transaction Analysis 61 (10-15 min.) CP 2-6 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Supplies.. 2,000 Accounts Payable 2,000 Purchased supplies on account....
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This note was uploaded on 04/07/2008 for the course ACCT 203 taught by Professor Fewox during the Spring '08 term at CofC.

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2811422509 - Chapter 2 Transaction Analysis Check Points (5...

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