B. Effect of Transactions on Accounting Elements Indicate the effect on the accounting elements of each transaction described in the source document. Write (+) for increase or (-) for decrease. Business Transactions 1. Cash disbursement made due to business registration 2. Charge purchase invoice received for supplies purchased 3. Statement of account from electric 4. 5. company for the energy consumed, payable next month Promissory note issued to replace the existing accounts payable Various official receipts and invoices incurred for operating expenses Asset Liability Capital Revenue Expenses

B. Effect of Transactions on Accounting Elements Indicate the effect on the accounting elements of each transaction described in the source document. Write (+) for increase or (-) for decrease. Business Transactions 1. Cash disbursement made due to business registration 2. Charge purchase invoice received for supplies purchased 3. Statement of account from electric 4. 5. company for the energy consumed, payable next month Promissory note issued to replace the existing accounts payable Various official receipts and invoices incurred for operating expenses Asset Liability Capital Revenue Expenses

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.2E

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If a journal entry includes a debit or credit to the Cash account, it is most likely which of the following? A. a closing entry B. an adjusting entry C. an ordinary transaction entry D. outside of the accounting cycle
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TB MC Qu. 02-148 (Static) Which of the following... Which of the following is not a step in the process to go from transactions and events to the financial statements? Multiple Choice Analyze each transaction and event using the accounting equation. Identify each transaction and event from source documents. Record relevant transactions and events in a journal. Post journal information to ledger accounts. Ensure the cash account balance is reduced to $0 at the end of each period. 21 of 26 Next.
Required information [The following information applies to the questions displayed below.] Doyle Company issued $380,000 of 10-year, 7 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $55,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Required a. Organize the transaction data in accounts under the accounting equation for Year 1 and Year 2. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) Event Year 1 1/1 DOYLE COMPANY Effect of Events on the Accounting Equation Year 1 and Year 2 Assets Cash #F HIP 3 Land Liabilities + Bonds Payable SUPUE Stockholders! Equity Retained Earnings Account Titles for Retained Earnings
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Required information [The following information applies to the questions displayed below) The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $20,000 of common stock for cash. 2. Recognized $60,000 of service revenue earned on account. 3. Collected $54,000 from accounts receivable. 4. Paid operating expenses of $37,800. 5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account The following transactions apply to Jova for Year 2 1. Recognized $67,500 of service revenue on account. 2. Collected $62,000 from accounts receivable 3. Determined that $800 of the accounts receivable were uncollectible and wrote them off 4. Collected $300 of an account that had previously been written off. 5. Paid $47,500 cash for operating expenses. 6. Adjusted the accounts to recognize…
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