Organiz e y our ans wer in tabular form us ing the

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Unformatted text preview: ed a c omputer on c redit. The owner inv es ted c as h in the bus ines s . Purc has ed offic e equipment for c as h. Collec ted an ac c ount rec eiv able. Indic ate the effec ts of eac h of thes e trans ac tions on the total amounts of the c ompany 's as s ets , liabilities , and owners ' equity . Organiz e y our ans wer in tabular form, us ing the following c olumn headings and the c ode letters I for inc reas e, D for dec reas e, and NE for no effec t. The ans wer for trans ac tion a is prov ided as an ex ample: Trans ac tion As s ets a I b NE* e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w = Liabilities I NE + Owners ' Equity NE NE 5/14 11/18/13 Assignme nt Pr int Vie w c d e f g h i D D I I I NE* NE* D D NE I NE NE NE NE NE I NE I NE NE Learning Objective: 02­03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners Equity. Worksheet A number of bus ines s trans ac tions c arried out by Smalling Manufac turing Company are as follows : a. b. c. d. e. f. g. h. i. Borrowed money from a bank . Sold land for c as h at a pric e equal to its c os t. Paid a liability . Returned for c redit s ome of the offic e equipment prev ious ly purc has ed on c redit but not y et paid for. (Treat this the oppos ite of a trans ac tion in whic h y ou purc has ed offic e equipment on c redit.) Sold land for c as h at a pric e in ex c es s of c os t. (Hint: The differenc e between c os t and s ales pric e repres ents a gain that will be in the c ompany 's inc ome s tatement.) Purc has ed a c omputer on c redit. The owner inv es ted c as h in the bus ines s . Purc has ed offic e equipment for c as h. Collec ted an ac c ount rec eiv able. Indic ate the effec ts of eac h of thes e trans ac tions on the total amounts of the c ompany 's as s ets , liabilities , and owners ' equity . Organiz e y our ans wer in tabular form, us ing the following c olumn headings and the c ode letters I for inc reas e, D...
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