Teri West operates his own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income. Assets = Liabilities + Owner's Equity Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses Bal. 23,700 3,100 59,300 6,400 79,700 1. +27,700 +27,700 2. -11,900 +11,900 3. -20,600 -20,600 4. +1,200 +1,200 5. -1,600 -1,600 6. -5,700 -5,700 7. -2,400 -2,400 Bal. 11,600 1,900 71,200 1,900 79,700 -1,600 27,700 -23,000 a. (1) Select the description for transaction 1. a. (2) Select the description for transaction 2. a. (3) Select the description for transaction 3. a. (4) Select the description for transaction 4. a. (5) Select the description for transaction 5. a. (6) Select the description for transaction 6. a. (7) Select the description for transaction 7. b. What is the amount of the net decrease in cash during the month? $fill in the blank 8 c. What is the amount of the net increase in owner's equity during the month? $fill in the blank 9 d. What is the amount of the net income for the month? $fill in the blank 10 e. How much of the net income for the month was retained in the business?
Teri West operates his own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income. Assets = Liabilities + Owner's Equity Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses Bal. 23,700 3,100 59,300 6,400 79,700 1. +27,700 +27,700 2. -11,900 +11,900 3. -20,600 -20,600 4. +1,200 +1,200 5. -1,600 -1,600 6. -5,700 -5,700 7. -2,400 -2,400 Bal. 11,600 1,900 71,200 1,900 79,700 -1,600 27,700 -23,000 a. (1) Select the description for transaction 1. a. (2) Select the description for transaction 2. a. (3) Select the description for transaction 3. a. (4) Select the description for transaction 4. a. (5) Select the description for transaction 5. a. (6) Select the description for transaction 6. a. (7) Select the description for transaction 7. b. What is the amount of the net decrease in cash during the month? $fill in the blank 8 c. What is the amount of the net increase in owner's equity during the month? $fill in the blank 9 d. What is the amount of the net income for the month? $fill in the blank 10 e. How much of the net income for the month was retained in the business?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter7: Financial Statements For A Proprietorship
Section: Chapter Questions
Problem 1MP
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Teri West operates his own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income.
| Assets | = | Liabilities + | Owner's Equity | ||||||||||
| Cash + Supplies + Land | = | Accounts Payable | + | Kristoff Walker, Capital | - | Kristoff Walker, Drawing | + | Fees Earned | - | Expenses | |||
| Bal. | 23,700 | 3,100 | 59,300 | 6,400 | 79,700 | ||||||||
| 1. | +27,700 | +27,700 | |||||||||||
| 2. | -11,900 | +11,900 | |||||||||||
| 3. | -20,600 | -20,600 | |||||||||||
| 4. | +1,200 | +1,200 | |||||||||||
| 5. | -1,600 | -1,600 | |||||||||||
| 6. | -5,700 | -5,700 | |||||||||||
| 7. | -2,400 | -2,400 | |||||||||||
| Bal. | 11,600 | 1,900 | 71,200 | 1,900 | 79,700 | -1,600 | 27,700 | -23,000 |
a. (1) Select the description for transaction 1.
a. (2) Select the description for transaction 2.
a. (3) Select the description for transaction 3.
a. (4) Select the description for transaction 4.
a. (5) Select the description for transaction 5.
a. (6) Select the description for transaction 6.
a. (7) Select the description for transaction 7.
b. What is the amount of the net decrease in cash during the month?
$fill in the blank 8
c. What is the amount of the net increase in owner's equity during the month?
$fill in the blank 9
d. What is the amount of the net income for the month?
$fill in the blank 10
e. How much of the net income for the month was retained in the business?
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VIEWStep 2 a) Description of transaction
VIEWStep 3 b) Computation of amount net decrease in cash
VIEWStep 4 b. Answer
VIEWStep 5 c) Computation of net increase in owner’s equity
VIEWStep 6 c. Answer
VIEWStep 7 d) Computation amount of net Income
VIEWStep 8 d) Answer
VIEWStep 9 e) Answer
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