Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 1, Problem 10QS
Summary Introduction
Concept Introduction:
Accounting equation is a mathematical representation of the relation between assets, liabilities, and equity. According to this relation, the total assets are equal to the sum of liabilities and equity.
To indicate: the accounting equation table for the given transactions.
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The following transactions were completed by the
company.
a. The company completed consulting work for a client
and immediately collected $7,100 cash.
b. The company completed commission work for a client
and sent a bill for $5,600 to be received within 30 days.
c. The company paid an assistant $2,200 cash as wages
for the period.
d. The company collected $2,800 cash as a partial
payment for the amount owed by the client in
transaction b.
e. The company paid $1,020 cash for this period's cleaning
services.
Required:
Enter the impact of each transaction on individual items of
the accounting equation. (Enter decreases to account
balances with a minus sign.)
Assets
Liabilities
Transactions Number
Accounts
Accounts
Owner,
Cash
Receivable
Payable
Capital
a.
%3D
b.
%3D
Balance after a and b
+
C.
+
%3D
Balance afterc
%3D
d.
%3D
Balance after d
+
%3D
е.
+
%3D
Balance after e
$
$
$
$
+
%3D
+
+
The following transactions were completed by the company.
a. The company completed consulting work for a client and immediately collected $6,900 cash.
b. The company completed commission work for a client and sent a bill for $5,400 to be received within 30 days.
c. The company paid an assistant $2,100 cash as wages for the period.
d. The company collected $2,700 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $980 cash for this period's cleaning services.
Required:
Enter the impact of each transaction on individual items of the accounting equation.
Note: Enter decreases to account balances with a minus sign.
Transactions Number
a.
b.
Balance after a and b
C.
Balance after c
d.
Balance after d
e.
Balance after e
Cash
$
Assets
$ 6,900 +
6,900
+
6,900
+
+
+
+
+
6,900 +
980 +
7,880 +
Accounts
Receivable
$
5,400
$ 5,400 =
5,400
5,400
= Liabilities +
Accounts
Payable
5,400
=
=
=
=
=
=
=
=
=
$
0
0
0
0
+
+
+
+
+
+
+
+
+
+
Owner,
Capital
$
0
0
0…
The following transactions were completed by the company:
a. The company completed consulting work for a client and immediately collected $7,000 cash.
b. The company completed commission work for a client and sent a bill for $5,500 to be received within 30 days.
c. The company paid an assistant $2,150 cash as wages for the period.
d. The company collected $2,750 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $1,000 cash for this period's cleaning services.
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a
minus sign.)
Transactions Number
b
Balance after a and b
Balance after c
d.
Balance after d
Balance after e
Cash
$
Assets
0
0+
0
55
41
Accounts
Receivable
$
0
0
0
partne
II
Liabilities
Accounts
Payable
$
0
E
0
0
+
Revenue
0
0
1
İ
O
Expenses
0
0
55
SHREE
Chapter 1 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three types of services typically offered...Ch. 1 - Prob. 8DQCh. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Choose from the following term or phrase a through...Ch. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Identify each of the following terms or phrases as...Ch. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Use Google's December 31. 2016, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Match each of the numbered descriptions I through...Ch. 1 - Prob. 5ECh. 1 - Enter the letter A through H for the principle or...Ch. 1 - Determine the missing amount from each of the...Ch. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Use the information in Exercise 1-15 to prepare an...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 23ECh. 1 - Identify how each of the following separate...Ch. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Gabi Gram started The Gram Co., a new business...Ch. 1 - Prob. 8PSACh. 1 - Sanyu Sony started a new business and completed...Ch. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - On October 1, 2018, Santana Rey launched a...Ch. 1 - Prob. 1FSACh. 1 - comparative figures ($ millions) for both Apple...Ch. 1 - Prob. 3FSACh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTN
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- The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $5,500 cash earned. b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days. c. The company paid an assistant $1,400 cash as wages for the period. d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $700 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities Equity %3D +] Accounts Accounts Common Cash Dividends Revenue Expenses %3D +] Receivable Payable Stock a. + %3D b. %3D Bal. %3D %3D C. Bal. %3D d. !! Bal. %3D %3! e. Bal. ++++ + ++++ + + +arrow_forwardUse additions and subtractions to show the dollar effects of each transaction on a. to e. below on the expanded accounting equation below. Intermediate balances are not required. a. The company completed consulting work for a client and immediately collected $5,500 cash. b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days. e. The company paid an assistant $1,400 cash as wages for the period. d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $700 cash for this period's cleaning services. Date Cash + Assets Accounts Receivable + Office Equipment = = Liabilities + Accounts + Payable Common Stock 4 Stockholders' Equity Dividends + Revenues Expensesarrow_forwardThe following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $7,200 cash earned b. The company completed commission work for a client and sent a bill for $5,700 to be received within 30 days c. The company paid an assistant $2,250 cash as wages for the period d. The company collected $2,850 cash as a partial payment for the amount owed by the client in transaction b e. The company paid $1,040 cash for this period's cleaning services Required: Enter the impact of each transaction on individual items of the accounting equation (Enter decreases to account balances with a minus sign) Assets = Liabilities + Equity Cash + Accounts Receivable = Accounts Payable + Owner, Capital − Owner, Withdrawals + Revenue − Expenses a. + = + − + − b. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0 c. + 0 = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0…arrow_forward
- S The following transactions were completed by the company: a. The company completed consulting work for a client and immediately collected $7,200 cash. b. The company completed commission work for a client and sent a bill for $5,700 to be received within 30 days. c. The company paid an assistant $2,250 cash as wages for the period. d. The company collected $2,850 cash as a partial payment for the amount owed by the client in transaction b e. The company paid $1,040 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. Note: Enter decreases to account balances with a minus sign. Transactions Number a. b. Balance after a and b C. Balance after c Balance after d e. Balance after e Cash Assets + + + + + + + + + Accounts Receivable = Liabilities Accounts Payable = = = = # 1111 + + + + + + + + + + Common Stock II Equity Dividends + + + + + + + + Revenue 111 11 Expensesarrow_forwardSuppose your company sells services for $325 cash this month. Your company also pays $100 insalaries and wages, which includes $15 that was payable at the end of the previous month and $85 forsalaries and wages of this month.Required:1. Show the journal entries to record these transactions.2. Calculate the amount that should be reported as net cash flow from operating activities.3. Calculate the amount that should be reported as net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?arrow_forwardYou run a consulting firm. During Year 1, your firm collected $200,000 from clients (all of these payments were for work previously done). On January 1, Year 1, the Accounts Receivable account had a balance of $40,000. On December 31, Year 1, the Accounts Receivable account had a balance of $60,000. Based on this information, what amount should your firm recognize as revenue for Year 1?arrow_forward
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- a. The company completed consulting work for a client and immediately collected $6,300 cash. b. The company completed commission work for a client and sent a bill for $4,800 to be received within 30 days. c. The company paid an assistant $1,800 cash as wages for the period. d. The company collected $2,400 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $860 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Transactions Number a. b. Balance after a and b C. Balance after c d. Balance after d e. Balance after e $ Cash Assets 0 0 0 0 + + + + + + + + + + Accounts Receivable $ 0 0 0 0 = = = = = = = = = Liabilities Accounts Payable $ 0 0 + 0 + 0 + + + + + + + + Common Stock $ 0 0 0 0 - - - - $ Equity Dividends 0 0 0 0 + + + + + + + + + + Revenue $ 0 - 0 0 0 - - Expenses $ 0 0 0 0arrow_forwardII. Computational. Look for the balances of the different accounts using the following transactions: A) Bought office equipment amounting to P5,000. B) Collected P7,800 cash for the work completed. C) Received P6,000 cash advance from clients. The service is to be rendered before the end of the month. D) Received P9,000 cash from clients on credit. E) Bought office supplies on credit amounting to P2,500. Look for the balance of obligations.arrow_forwardYou work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company's records, you have extracted the following information: Life-Positive's Account 2021 ($) Balances 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32% Required: T 1. For the year ending 2022, determine the Net New Equity, Change in Net Working Capital, Net Capital Spending and Operating Cash flow. 2. Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders…arrow_forward
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