Trans action Cash Accounts Receivable Supplies Equipment Accounts Payable Share

Trans action cash accounts receivable supplies

This preview shows page 19 - 27 out of 57 pages.

Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Share Capital Retained Earnings Rev. Exp. Div. 1. +15,000 +15,000 Assets = Liabilities + Equity + + + + + = Illustration 1-10 LO 7
Image of page 19

Subscribe to view the full document.

1-20 8. -250 -250 9. +600 -600 10. -1,300 -1,300 5. +250 -250 4. +1,200 +1,200 7. -1,700 -600 -900 -200 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Share Capital Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 6. +1,500 +2,000 +3,500 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 2. PURCHASE OF EQUIPMENT FOR CASH Softbyte SA purchases computer equipment for €7,000 cash . Illustration 1-10 LO 7
Image of page 20
1-21 8. -250 -250 9. +600 -600 10. -1,300 -1,300 5. +250 -250 4. +1,200 +1,200 7. -1,700 -600 -900 -200 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 6. +1,500 +2,000 +3,500 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 3. PURCHASE OF SUPPLIES ON CREDIT Softbyte SA purchases for €1,600 headsets and other accessories expected to last several months. The supplier allows Softbyte to pay this bill in October. Illustration 1-10 Share Capital LO 7
Image of page 21

Subscribe to view the full document.

1-22 8. -250 -250 9. +600 -600 10. -1,300 -1,300 5. +250 -250 7. -1,700 -600 -900 -200 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 6. +1,500 +2,000 +3,500 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 4. SERVICES PERFORMED FOR CASH Softbyte SA receives €1,200 cash from customers for app development services it has performed. Illustration 1-10 4. +1,200 +1,200 Share Capital LO 7
Image of page 22
1-23 8. -250 -250 9. +600 -600 10. -1,300 -1,300 7. -1,700 -600 -900 -200 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 6. +1,500 +2,000 +3,500 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 5. PURCHASE OF ADVERTISING ON CREDIT Softbyte SA receives a bill for €250 from the Programming News for advertising on its website but postpones payment until a later date. Illustration 1-10 4. +1,200 +1,200 5. +250 -250 Share Capital LO 7
Image of page 23

Subscribe to view the full document.

1-24 8. -250 -250 9. +600 -600 10. -1,300 -1,300 7. -1,700 -600 -900 -200 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 6. SERVICES PROVIDED FOR CASH AND CREDIT. Softbyte provides €3,500 of services . The company receives cash of €1,500 from customers, and it bills the balance of €2,000 on account . LO 7 4. +1,200 +1,200 6. +1,500 +2,000 +3,500 5. +250 -250 Share Capital Illustration 1-10
Image of page 24
1-25 8. -250 -250 9. +600 -600 10. -1,300 -1,300 4. +1,200 +1,200 7. -1,700 -600 -900 -200 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 6. +1,500 +2,000 +3,500 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 7. PAYMENT OF EXPENSES Softbyte SA pays the following expenses in cash for September: office rent €600 , salaries and wages of employees €900 , and utilities €200 . Illustration 1-10 LO 7 5. +250 -250 Share Capital
Image of page 25

Subscribe to view the full document.

1-26 8. -250 -250 9. +600 -600 10. -1,300 -1,300 Trans- action Cash Accounts Receivable Supplies Equipment Accounts Payable Retained Earnings Rev. Exp. Div. Assets = Liabilities + Equity + + + + + = 1. +15,000 +15,000 2. -7,000 +7,000 3. +1,600 +1,600 $8,050 $1,400 $1,600 $7,000 $1,600 $15,000 $4,700 $1,950 $1,300 + + + + + = - - TRANSACTION 8. PAYMENT OF ACCOUNTS PAYABLE Softbyte SA pays its €250 Programming News bill in cash. The company previously (in Transaction 5) recorded the bill as an increase in Accounts Payable.
Image of page 26
Image of page 27
  • Fall '18
  • Mike Leu

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes