8 Paid 2500 cash for office salaries 9 Paid 1200 cash dividends to stockholders

8 paid 2500 cash for office salaries 9 paid 1200 cash

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8.Paid $2,500 cash for office salaries.9.Paid $1,200 cash dividends to stockholders.10.Received a check for $2,000 from a client in payment on account for commissions billedin transaction 4.FOR INSTRUCTOR USE ONLY3-40
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Trans.Cash+Ac-cts..Rec.+Sup-plies+Equip.=NotesPay.+Ac-cts..Pay.+Com-monStock+Service Rev.-RentExp.-AdvertExp.-Sal. &WagesExp.-Div.12345678910Totals
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The Accounting Information SystemInstructions(a) Prepare a tabular analysis of the transactions indicating the final balance of each item.(b) Indicate the basic accounting equation and prove that it balances.(c) Determine what the net income or loss is, showing calculations.Ans: N/A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 15, AACSB: Analytic, AICPA FC: Reporting, IMA: Reporting3-42
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Solution 161(15 min.)(a)Trans.Cash+Accts.Rec.+Sup-plies+Equip.=NotesPay.+Ac-cts.Pay.+Com-monStock+Ser-vice Rev.-RentExp.-Ad-vertExp.-Sal. &WagesExp.-Div.1+40,000+40,0002+500+5003-3,500+25,000+21,5004+4,000+4,000-7005-7006-250+2507+800-8008-2,500-2,5009-1,200-1.20010+2,000-2,000Totals33,8502,00050025,00021,5001,05040,0004,0007008002,5001,200(b)Assets=Liabilities+Stock. Equity$61,350=$22,550$38,800(c)$4,000 - $700 - $800 - $2,500 = $0 Net income
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The Accounting Information SystemEx. 162Selected transactions for Myme Inc. one listed here.1.Received $50,000 from stockholders.2.Purchased equipment for $75,000, paying $15,000 in cash and giving a note payable forthe remainder.3.Paid $3,000 rent for the month.4.Recorded $12,500 of services provided on account.5.Paid wages of $9,500.6.Received $7,000 in cash for services provided.7.Collected $2,000 from customers on account.InstructionsDecribe the effect of each transaction on the basic accounting equation. For example, the firstanswer is (1) Increase in assets $50,000 and increase in stockholders' equity $50,000.Ans: N/A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 15, AACSB: Analytic, AICPA FC: Reporting, IMA: ReportingSolution 162(10 min.)1. Increase in assets $50,000 and increase in stockholders' equity $50,000.2. Increase in assets $60,000 and increase in liabilities $60,000.3. Decrease in assets $3,000 and decrease in stockholders' equity $3,0004. Increase in assets $12,500 and increase in stockholders' equity $12,500.5. Decrease in assets $9,500 and decrease in stockholders' equity $9,5006. Increase in assets $7,000 and increase in stockholders' equity $7,0007. Increase in assets $2,000 and decrease in assets $2,000.FOR INSTRUCTOR USE ONLY3-44
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The Accounting Information SystemEx. 163Transactions for the Hartman Company for the month of November are presented below. 1.Stockholders invested an additional $40,000 cash in the business.2.Purchased land costing $18,000 for cash.3.Purchased equipment costing $45,000 for $4,500 cash and the remainder on credit.
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