Ch+03+Edited

Transactions 3 on october 2 sierra purchased

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Unformatted text preview: h to Superior Equipment Sales Co. 1. +10,000 2. +5,000 3. -5,000 3-10 +10,000 +5,000 +5,000 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 4. On October 2, Sierra received a $1,200 cash advance from R. Knox, a client. 1. +10,000 2. +5,000 3. -5,000 4. +1,200 3-11 +10,000 +5,000 +5,000 +1,200 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 5. On October 3, Sierra received $10,000 in cash from Copa Company for guide services performed. 1. +10,000 2. +5,000 3. -5,000 4. +1,200 5. +10,000 3-12 +10,000 +5,000 +5,000 +1,200 +10,000 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 6. On October 3, Sierra Corporation paid its office rent for the month of October in cash, $900. 1. +10,000 2. +5,000 3. -5,000 4. +1,200 5. +10,000 6. 3-13 -900 +10,000 +5,000 +5,000 +1,200 +10,000 -900 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 7. On October 4, Sierra paid $600 for a one-year insurance policy that will expire next year on September 30. 1. +10,000 +10,000 2. +5,000 3. -5,000 +5,000 +5,000 4. +1,200 +1,200 5. +10,000 6. -900 7. -600 +10,000 3-14 -900 +600 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 8. On October 5, Sierra purchased supplies on account from Aero Supply for $2,500. 1. +10,000 +10,000 2. +5,000 3. -5,000 +5,000 +5,000 4. +1,200 +1,200 5. +10,000 6. -900 7. +10,000 -600 8. 3-15 -900 +600 +2,500 +2,500 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 10. On October 20, Sierra paid a $500 dividend. 1. +10,000 +10,000 2. +5,000 3. -5,000 +5,000 +5,000 4. +1,200 +1,200 5. +10,000 6. -900 7. +10,000 -600 8. 10. 3-16 -900 +600 +2,500 -500 +2,500 -500 SO 1 Analyze the effect of business transactions on the basic accounting equation. SO Accounting Transactions Accounting Transactions 11. Employees have worked two weeks, earning $4,000 in salaries, which were paid on October 26. 1. +10,000 +10,000 2. +5,000 3. -5,000 +5,000 +5,000 4. +1,200 +1,200 5. +10,000 6. -900 7. +10,000 -600 8. 10. -500 11. -4,000 3-17 -900 +600 +2,500 +2,500 -500 -4,000 3-18 The Account The Account Record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. Account Debit = “Left” Credit = “Right” An Account can An be illustrated in a T-Account form. T-Account 3-19 Account Name Debit / Dr. Credit / Cr. SO 2 Explain what an account is and how it helps in the recording process. The Account The Account Debit and Credit Procedures Double-entry system Double-entry ► ► Recording done by debiting at least one account and cred...
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This note was uploaded on 09/27/2013 for the course MGT 11A taught by Professor Armstrong during the Fall '08 term at UC Davis.

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