Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Chapter 2, Problem 2E
Identifying Account Titles
The following are independent situations.
- a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $25,000 within three months.
- b. A company purchases for $21,000 cash a new delivery truck that has a list (“sticker”) price of $24,000.
- c. A women’s clothing retailer orders 30 new display stands for $300 each for future delivery.
- d. A new company is formed and issues 100 shares of stock for $12 per share to investors.
- e. A company purchases a piece of land for $50,000 cash. An appraiser for the buyer valued the land at $52,500.
- f. The owner of a local company uses a personal check to buy a $10,000 car for personal use. Answer from the company’s point of view.
- g. A company borrows $2,000 from a local bank and signs a six-month note for the loan.
- h. A company pays $1,500 owed on its 10-year notes payable (ignore interest).
Required:
- 1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events.
- 2. At what amount would you record the delivery truck in (b)? The piece of land in (e)? What measurement principle are you applying?
- 3. What reasoning did you apply in (c)? For (f), what accounting concept did you apply?
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The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems.
Jan. 3
Feb. 10
13
Mar. 12
14
Apr. 3
May 11
13
July 12
Aug. 1
Oct. 5
15
Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note.
Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400.
Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000.
Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account.
Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account.
Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of
January 3. (Record both the debit and the credit to the notes receivable account.)
Received from Bradford & Co. the amount due on the note of March 12.
Dry Creek Co. dishonored its note dated March 14.
Received from Dry Creek Co. the amount owed on the…
Chapter 2 Solutions
Fundamentals Of Financial Accounting
Ch. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Define a transaction anti give an example of each...Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the basic accounting equation?Ch. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - What is a journal entry? What is the typical...Ch. 2 - What is a T-account? What is its purpose?Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Which of the following is not an asset account? a....Ch. 2 - Which of the following statements describe...Ch. 2 - Total assets on a balance sheet prepared on any...Ch. 2 - The duality of effects can best be described as...Ch. 2 - The T-account is used to summarize which of the...Ch. 2 - Prob. 6MCCh. 2 - A company was recently formed with 50,000 cash...Ch. 2 - Which of the following statements would be...Ch. 2 - Prob. 9MCCh. 2 - Prob. 10MCCh. 2 - Prob. 1MECh. 2 - Prob. 2MECh. 2 - Matching Terms with Definitions Match each term...Ch. 2 - Prob. 4MECh. 2 - Prob. 5MECh. 2 - Prob. 6MECh. 2 - Prob. 7MECh. 2 - Identifying Events as Accounting Transactions Half...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Preparing Journal Entries For each of the...Ch. 2 - Posting to T-Accounts For each of the transactions...Ch. 2 - Reporting a Classified Balance Sheet Given the...Ch. 2 - Prob. 13MECh. 2 - Prob. 14MECh. 2 - Identifying Transactions and Preparing Journal...Ch. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 1ECh. 2 - Identifying Account Titles The following are...Ch. 2 - Classifying Accounts and Their Usual Balances As...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Recording Journal Entries Refer to E2-4. Required:...Ch. 2 - Prob. 6ECh. 2 - Recording Journal Entries Refer to E2-6. Required:...Ch. 2 - Analyzing the Effects of Transactions in...Ch. 2 - Inferring Investing and Financing Transactions and...Ch. 2 - Analyzing Accounting Equation Effects, Recording...Ch. 2 - Recording Journal Entries and Preparing a...Ch. 2 - Analyzing the Effects of Transactions Using...Ch. 2 - Explaining the Effects of Transactions on Balance...Ch. 2 - Calculating and Evaluating the Current Ratio...Ch. 2 - Prob. 15ECh. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Prob. 1PACh. 2 - Recording Transactions (in a Journal and...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Prob. 2PBCh. 2 - Recording Transactions (in a Journal and...Ch. 2 - Finding and Analyzing Financial Information Refer...Ch. 2 - Finding and Analyzing Financial Information Refer...Ch. 2 - Prob. 4SDCCh. 2 - Prob. 5SDCCh. 2 - Accounting for the Establishment of a Business...
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