FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Topic Video
Question
thumb_up100%
T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be used in his business.
Transactions
- On March 1, 20–, when T.J. began his business, he invested in the business a bank balance of $8000, an automobile worth $14 000, and equipment costing $6000.
**DON’T FORGET TO CALCULATE THE OPENING CAPITAL BALANCE. (Remember the fundamental
- Issued cheque for $465 to Royalty Trust Co. in payment of the monthly rent.
- Issued cheque for $200 to the owner for personal use.
- Received a bill in the amount of $900 from Eustace Bros. for office supplies purchased on account.
- Issued cheque for $350 to West End Garage as payment for repairs to the owner’s personal car.
- Issued bill to F. Morsi for services performed, $500.
- Issued cheque for $400 to pay the office secretary’s weekly wage.
- Received an invoice for $90 from Regal Oil for gasoline and oil used in the business automobile, due in 30 days.
- Received a memorandum stating that $50 had been deducted by the bank from the business’s account to cover bank charges for the month.
- Issued cheque for $150 to the City Telephone Company in payment of the telephone bill that arrived today.
- Issued bill to M. Armota for services performed, $800.
- Received $250 cash from C. Fuda to pay for services performed.
- Purchased a magazine subscription for the office for $75, paid by cheque.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Hello, I need help with these T-Charts and an explanation of the debits and credits.arrow_forwardOn June 1, 2022 Bedu, Budi, and Bobi were three friends who wanted to form a new firm which would be named as 3B. Bedu would deposit Cash $2,250, Budi would give Equipment $1,150, and Bobi would give Vehicle $3,350. The correct record for this transaction is Select one: O a. Equipment $1,150 on Credit b. Cash $2,250 on Credit O c. Capital of Bedu $1,150 on Credit O d. Capital of Bobi $3,350 on Creditarrow_forwardYou are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing sector approached your bank for a large credit facility in the sum of $20 million for production equipment and warehousing. The customer submitted the following financials to you. The cash position increased from $6.7 million in 2019 to $16 million in 2021. Does this signal a strengthening of the liquidity position of the firm? Explain.arrow_forward
- [The following information applies to the questions displayed below.] Sanyu Sony started a new business and completed these transactions during December. 1 Sanyu Sony transferred $65,300 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. 2 The company paid $1,800 cash for the December rent. 3 The company purchased $14,200 of electrical equipment by paying $6,000 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased supplies by paying $1,000 cash. 6 The company completed electrical work and immediately collected $1,800 cash for these services. 8 The company purchased $2,820 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $5,500. 18 The company purchased $450 of supplies on credit. 20 The company paid $2,820 cash for the office equipment purchased on December 8. 24 The company billed a client $900 for electrical work completed; the balance is…arrow_forwardYou are the bookkeeper for Harley Inc., a newly formed corporation. Harley had the following transactions for their business: * Four shareholders contributed $40,000 ($10,000 each) in exchange for Harley common stock. * Harley purchased inventory for $5,000. Harley received an invoice for the inventory that is due in 30 days. What are the effects on Harley's accounting equation? A B D Based on the two transactions, Assets increased by $40,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $45,000. Based on the two transactions, Assets increased by $45,000, Liabilities increased by $5,000 and Shareholder Equity increased by $40,000. C Based on the two transactions, Assets increased by $15,000, Liabilities increased by $5,000 and Shareholder Equity increased by $10,000. Based on the two transactions, Assets increased by $35,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $40,000.arrow_forwardI invest $10,000 in a new company. The company then gets a bank loan for $5,000. The company then buys a machine for $3,000 and inventory for $2,000. Create a balance sheet for the company.arrow_forward
- thanks for helparrow_forwardSubmit correct and complete solutions. give propriate Explanation. Provide step-by-step detailed explanations.arrow_forwardLabel each transaction as an Operating Activity, Investing activity, or Financing Activity and if it is an inflow or (outflow). 1. Drake issued 10,000 shares of common stock for $40,000 2. Drake collected $80,000 from customers on Accounts Receivables 3. Drake Paid $5,000 in interest payments on their bonds 4. Drake purchased a new copy machine and paid cash of $35,000 5. Drake sold their old copy machine for $2,000 cash 6. Drake paid a $4,500 dividend to shareholders 7. Drake borrowed $40,000 cash from the bank on December 28,2019 (payments begin 1/28/20) 8. Drake purchased a patent for $15,000 cash 9. Drake paid $65,000 cash in wages during 2019 10. Drake paid 2018 taxes due in the amount of $10,500 on April 15, 2019 Indicate the total net cashflow (Inflow-Outflow) from above for each classification: Operating Investing Financingarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education