Analyze the following transactions to determine which accounts are involved, whether they will be increased or decreased, and in which account group they will belong, use the expanded accounting equation:
Assets = Liabilities + Owner's Equity - Drawing + Revenue - Expenses
Note: Use a (+) for increase and a (-) for decrease.
Example: The owner invested in his business.
Answer : + Assets (Cash) + Owner's Equity (Capital)
1. Bought new equipment on account.
2. Received cash for services rendered.
3. The business performed services on account.
4. Withdrew cash for personal use.
5. Paid secretary salary.
6. Paid for supplies purchased.
7. Billed customers for services rendered.
8. Received payment from a customer paying on his account.
9. The supplies were used up. Record them as an expense now.
10. Borrowed money from the bank
11. Purchased on account (charged) some office equipment.
12. Paid for utilities expense.
13. Paid the bank the money we previously borrowed.
14. Paid the telephone bill that just came in.
15. Made a partial payment to a creditor.
16. Took cash out of the business to pay for a personal bill.
17. Recorded revenue earned, but not collected yet.
18. Recorded expenses incurred, but not collected yet.
19.Received cash for the return of same equipment that was defective.
20. Received payment from an Account Receivable.
No comments:
Post a Comment