Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Chapter 3, Problem 3.5E
To determine
Introduction: Each financial transaction or economic event will affect either assets, liabilities, or owners’ equity. Thus, the basis for recording these transactions in the accounting system depends on the
The Preparation of summary showing the effect of each transaction on the accounting equation.
Expert Solution & Answer
Answer to Problem 3.5E
According to
Explanation of Solution
| Assets = | Liabilities + | Stockholders’ equity | |||||||
| Date/Balance | Cash | Receivables | Supplies | Land | Equipment | Accounts payable | Notes payable | Capital Stock | |
| 1 | $1,530 | $1,530 | |||||||
| Bal. | $1,530 | $1,530 | |||||||
| 2 | $1,365 | $1,365 | |||||||
| Bal. | $1,530 | $1,365 | $1,365 | $1,530 | |||||
| 3 | $750 | $750 | |||||||
| Bal. | $750 | $1,530 | $1,365 | $1,365 | $2,280 | ||||
| 4 | -$4,240 | $4,240 | |||||||
| Bal. | -$3,490 | $1,530 | $1,365 | $4,240 | $1,365 | $2,280 | |||
| 5 | $2,500 | $2,500 | |||||||
| Bal. | -$990 | $1,530 | $1,365 | $4,240 | $1,365 | $2,500 | $2,280 | ||
| 6 | $890 | -$890 | |||||||
| Bal. | -$100 | $640 | $1,365 | $4,240 | $1,365 | $2,500 | $2,280 | ||
| 7 | $50,000 | $50,000 | |||||||
| Bal. | -$100 | $640 | $1,365 | $50,000 | $4,240 | $1,365 | $2,500 | $50,000 | $2,280 |
| 8 | -$4,000 | -$4,000 | |||||||
| Bal. | -$4,100 | $640 | $1,365 | $50,000 | $4,240 | $1,365 | $2,500 | $50,000 | -$1,720 |
| 9 | -$500 | -$500 | |||||||
| Bal. | ($4,600) | $640 | $1,365 | $50,000 | $4,240 | $865 | $2,500 | $50,000 | ($1,720) |
Total Assets = $51,645Total Liabilities and capital = $51,645
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Students have asked these similar questions
Give what is required, For the Classification: (Classify the account if it is current/noncurrent asset; current/non-current liabilities; equity; revenue or expense); For the normal balance (answer whether the normal balance is a debit or credit) For the presentation (Classify whether a balance sheet or an income statement account).
ACCOUNT
CLASSIFICATION
NORMAL BALANCE
PRESENTATION
OWNER’S DRAWING
PETTY CASH FUND
ACCOUNTS RECEIVABLE
NOTES RECEIVABLE (6 MOS.)
NOTES PAYABLE (2 YEARS)
INTEREST EXPENSE
BONDS PAYABLE
UNEARNED INCOME
ACCRUED EXPENSE
PREPAID EXPENSE
SUPPLIES
COST OF GOOD SOLDS
MERCHANDISE INVENTORY, END
MERCHANDISE INVENTORY, BEG
PATENT
GOODWILL
ADVANCES FROM CUSTOMERS
ADVANCES TO SUPPLIERS…
Write the type of journal to be used for each of the following transactions: (general journal, sales journal, purchase journal cash receipts journal, cash disbursement journal)1. Purchase of merchandise on account2. Payment of accounts payable3. Collection of account receivable4. Sales on account5. Cash investment made by the owner6. Payment of utility expense7. Recording depreciation expense for the year8. Withdrawal of cash by the owner9. Cash sales10. Cash purchases
Directions: Write (+) if there is an increase, (-) if there is a decrease, or NE if there
is no effect on the assets, liabilities and equity accounts. Write your
answers on a separate sheet of paper.
Liability
Owner's Equity
Transactions
Asset
1. Invested cash in the business
2. Purchased equipmnent on a cash basis
3. Billed a customer for a spa service
4. Paid employee's salary
5. Purchased supplies on account
6. Paid an advertisement for the
company's new product
7. Paid the rent in advance
8. Received cash from customers
9. Withdrew cash for some personal use
10. Invested a vehicle on the company
Chapter 3 Solutions
Using Financial Accounting Information
Ch. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10E
Ch. 3 - Prob. 3.11MCECh. 3 - Prob. 3.12MCECh. 3 - Prob. 3.13MCECh. 3 - Prob. 3.14MCECh. 3 - Prob. 3.15MCECh. 3 - Prob. 3.16MCECh. 3 - Prob. 3.17MCECh. 3 - Prob. 3.18MCECh. 3 - Prob. 3.1PCh. 3 - Prob. 3.2.1PCh. 3 - Prob. 3.2.2PCh. 3 - Prob. 3.2.3PCh. 3 - Prob. 3.2.4PCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.2PCh. 3 - Prob. 3.3.3PCh. 3 - Prob. 3.3.4PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5.1MCPCh. 3 - Prob. 3.5.2MCPCh. 3 - Prob. 3.5.3MCPCh. 3 - Prob. 3.6.1MCPCh. 3 - Transaction Analysis and Financial Statements Blue...Ch. 3 - Prob. 3.6.3MCPCh. 3 - Prob. 3.6.4MCPCh. 3 - Prob. 3.7.1MCPCh. 3 - Prob. 3.7.2MCPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.8MCPCh. 3 - Prob. 3.9.1MCPCh. 3 - Problem 3-9 Transaction Analysis and Journal...Ch. 3 - Prob. 3.10.1MCPCh. 3 - Prob. 3.10.2MCPCh. 3 - Prob. 3.10.3MCPCh. 3 - Prob. 3.10.4MCPCh. 3 - Prob. 3.11MCPCh. 3 - Prob. 3.12.1MCPCh. 3 - Prob. 3.12.2MCPCh. 3 - Prob. 3.13.1MCPCh. 3 - Prob. 3.13.2MCPCh. 3 - Prob. 3.14.1MCPCh. 3 - Prob. 3.14.2MCPCh. 3 - Prob. 3.14.3MCPCh. 3 - Prob. 3.14.4MCPCh. 3 - Prob. 3.14.5MCPCh. 3 - Prob. 3.15.1MCPCh. 3 - Prob. 3.15.2MCPCh. 3 - Prob. 3.15.3MCPCh. 3 - Prob. 3.15.4MCPCh. 3 - Prob. 3.1AAPCh. 3 - Prob. 3.2.1AAPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.1AAPCh. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Prob. 3.3.4AAPCh. 3 - Prob. 3.4AAPCh. 3 - Prob. 3.5.1AAMCPCh. 3 - Prob. 3.5.2AAMCPCh. 3 - Prob. 3.5.3AAMCPCh. 3 - Prob. 3.6.1AAMCPCh. 3 - Prob. 3.6.2AAMCPCh. 3 - Prob. 3.7.1AAMCPCh. 3 - Prob. 3.7.2AAMCPCh. 3 - Prob. 3.8AAMCPCh. 3 - Prob. 3.9.1AAMCPCh. 3 - Prob. 3.9.2AAMCPCh. 3 - Prob. 3.10.1AAMCPCh. 3 - Prob. 3.10.2AAMCPCh. 3 - Prob. 3.10.3AAMCPCh. 3 - Prob. 3.10.4AAMCPCh. 3 - Prob. 3.11AAMCPCh. 3 - Prob. 3.12.1AAMCPCh. 3 - Prob. 3.12.2AAMCPCh. 3 - Prob. 3.13.1AAMCPCh. 3 - Prob. 3.13.2AAMCPCh. 3 - Prob. 3.14.1AAMCPCh. 3 - Prob. 3.14.2AAMCPCh. 3 - Prob. 3.15.1AAMCPCh. 3 - Prob. 3.15.2AAMCP
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