Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851496
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1.40AP
Using the
Missy Mansion opened a public relations firm called Solid Gold on August 1, 2016. The following amounts summarize her business on August 31, 2016:
During September 2016, the business completed the following transactions:
- a. Missy Mansion contributed $8,000 cash in exchange for common stock.
- b. Performed service for a client and received cash of $1,300.
- c. Paid off the beginning balance of accounts payable.
- d. Purchased office supplies from OfficeMax on account, $400.
- e. Collected cash from a customer on account, $2,200.
- f. Cash dividends of $1,800 were paid to stockholders.
- g. Consulted for a new band and billed the client for services rendered, $6,500.
- h. Recorded the following business expenses for the month:
Paid office rent: $1,400.
Paid advertising: $350.
Analyze the effects of the transactions on the accounting equation of Solid Gold using the format presented on page 43.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Dallas Parsons, CPA, began an accounting practice and completed these transactions during September 2015.
Sept 1 Invested $15,000 of his personal savings into a bank account opened in the name of the accounting practice.
Sept 2 Purchased office equipment for $12,500, paying $800 cash and agreeing to pay the balance in one year.
Sept 3 Rented office space and paid cash for two months in advance, $11,200.
Sept 4 Completed accounting work for a client and immediately collected $1,500 in cash for the work done.
Sept 8 Purchased office supplies for cash, $150.
Sept 15 Completed accounting services for a client on credit, $2,300.
Sept 20 Received $2,300 from the above client for the work completed on September 15.
Sept 30 Paid utilities expense for month of $1,300.
Sept 30 Paid the office secretary's salary, $400.
Sept 30 Paid $100 for repairs to the photocopier.
Show the effects of the above transactions on the balance sheet items of Dallas Parsons, CA. Use the following…
What is the journal entry for the following transaction
A. Directions: Bean Company established by Mr. Bean himself begun business on September 1, 2016. Selected transaction for September related to its merchandising businesses are given below. Assuming you are the bookkeeper of bean Company record the forgoing transactions. September 1 Mr. Bean withdrew P1,000,000 from his personal savings account and deposited it under the account of Bean Company
2 Cash purchases of merchandise P100,000. FOB shipping point freight collect P1,200
2 Sold merchandise for P25,000 to bont trading, terms: 1/10, n/60. FOB shipping point freight prepaid, P660
3 Cash sales to Coco Company P7,000 FOB destination freight prepaid P550
On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
Oct.
1
Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000.
2
Paid rent on office and equipment for the month, $4,800.
3
Purchased supplies on account, $2,150.
4
Paid creditor on account, $1,100.
5
Earned sales commissions, receiving cash, $18,750.
6
Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800.
7
Paid office salaries, $3,500.
8
Determined that the cost of supplies used was $1,300.
9
Paid dividends, $1,500.
1.
Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.
2.
Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine…
Chapter 1 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
Ch. 1 - Prob. 1QCCh. 1 - Prob. 2QCCh. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the a. financial...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - Prob. 13RQCh. 1 - Prob. 14RQCh. 1 - Prob. 15RQCh. 1 - Prob. 16RQCh. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for return on assets...Ch. 1 - Identifying users of accounting information For...Ch. 1 - Prob. 1.2SECh. 1 - Prob. 1.3SECh. 1 - Prob. 1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Using the accounting equation Kenmore Handyman...Ch. 1 - Using the accounting equation Joshs Overhead Doors...Ch. 1 - Identifying accounts Consider the following...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 - Prob. 1.12SECh. 1 - Use the following injo17nation to answer Short...Ch. 1 - Prob. 1.14SECh. 1 - Prob. 1.15SECh. 1 - Calculating Return on Assets (ROA) Refined Water...Ch. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Using the accounting equation Compute the missing...Ch. 1 - Using the accounting equation Green City Builders...Ch. 1 - Prob. 1.22ECh. 1 - Using the accounting equation During 2016,...Ch. 1 - Using the accounting equation The records of...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. 1.28ECh. 1 - Using the accounting equation to analyze business...Ch. 1 - Preparing the financial statements Estella Osage...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Preparing the statement of cash flows For each...Ch. 1 - Preparing the statement of cash flows Bean Town...Ch. 1 - Calculating return on assets (ROA) Alec Appliance...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Preparing financial statements Presented here are...Ch. 1 - Preparing financial statements Click a Pix...Ch. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Prob. 1.45APCh. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.47BPCh. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.49BPCh. 1 - Prob. 1.50BPCh. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Lets examine a case using Gregs Tunes and Sals...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1CTFCCh. 1 - This and similar cases in later chapters focus on...
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
- On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. 2 Paid rent on office and equipment for the month, $4,800. 3 Purchased supplies on account, $2,150. 4 Paid creditor on account, $1,100. 5 Earned sales commissions, receiving cash, $18,750. 6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. 7 Paid office salaries, $3,500. 8 Determined that the cost of supplies used was $1,300. 9 Paid dividends, $1,500. 1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine…arrow_forwardOn November 1, 2018, Kris Lehman established an interior decorating business, Modern Designs.During the month, Kris completed the following transactions related to the business:Nov. 1. Kris transferred cash from a personal bank account to an account to be used for the business in exchangefor common stock, $36,000.1. Paid rent for period of November 1 to end of month, $4,000.6. Purchased office equipment on account, $16,000.8. Purchased a truck for $43,000 paying $4,300 cash and giving a note payable for the remainder.10. Purchased supplies for cash, $1,860.12. Received cash for job completed, $8,000.15. Paid annual premiums on property and casualty insurance, $2,400.23. Recorded jobs completed on account and sent invoices to customers, $15,500.24. Received an invoice for truck expenses, to be paid in November, $1,250.Enter the following transactions on Page 2 of the two-column journal:29. Paid utilities expense, $3,660.29. Paid miscellaneous expenses, $1,700.30. Received cash from…arrow_forwardUsing the accounting equation for transaction analysis Meg McKinney opened a public relations firm called Solid Gold on August 1, 2018. The following amounts summarize her business on August 31, 2018 During September 2018, the business completed the following transactions: a. Received contribution of $17,000 cash from Meg McKinney in exchange for common stock. b. Performed service for a client and received cash of $800. c. Paid off the beginning balance of accounts payable. d. Purchased office supplies from OfficeMax on account, $1,200. e. Collected cash from a customer on account, $2,000. f. Cash dividends of $1,600 were paid to stockholders. g. Consulted for a new band and billed the client for services rendered, $4,500. h. Recorded the following business expenses for the month: Paid office rent: $1,000. Paid advertising: $500. Analyze the effects of the transactions on the accounting equation of Solid Gold using the format presented in Exhibit 1-6.arrow_forward
- On October 1, 2015, Leo Chavez established Mighty Realty Services, which completed the following transactions during the month: 1. On October 1, Leo Chavez transferred cash from a personal bank account to an account to be used for the business, P175,000. 2. On October 2, purchased supplies on account, P10,000. 3. On October 5, earned sales commissions, receiving cash, P122,500. 4. On October 10, paid rent on office and equipment for the month, P38,000. 5. On October 15, paid creditor on account, P6,000. 6. On October 20, withdrew cash for personal use, P30,000. 7. On October 25, paid automobile expenses for month, P15,000, and miscellaneous expenses, P4,000. 8. On October 28, paid office salaries, P31,000. Instructions A. Journalize entries for transactions (a) through (h), using the following account titles, omit the explanation: 11 - Cash 12 - Supplies 21 - Accounts Payable 31 - Leo Chavez, Capital 32 - Leo Chavez, Drawing 41 - Sales Commissions 51 - Rent Expense 52 - Office Salaries…arrow_forwardTransactions; Financial Statements On April 1, 2016, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $24,000 from personal funds. Paid rent on office and equipment for the month, $3,600. Paid automobile expenses (including rental charge) for month, $1,350, and miscellaneous expenses, $600. Purchased office supplies on account, $1,200. Earned sales commissions, receiving cash, $19,800. Paid creditor on account, $750. Paid office salaries, $2,500. Withdrew cash for personal use, $3,500. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900. Required: 1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers. Assets = Liabilities + Owner's Equity Cash + Supplies =…arrow_forwardTransactions; Financial Statements On April 1, 2016, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $24,000 from personal funds. Paid rent on office and equipment for the month, $3,600. Paid automobile expenses (including rental charge) for month, $1,350, and miscellaneous expenses, $600. Purchased office supplies on account, $1,200. Earned sales commissions, receiving cash, $19,800. Paid creditor on account, $750. Paid office salaries, $2,500. Withdrew cash for personal use, $3,500. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900. 1. Prepare a statement of owner's equity for April. If an amount is zero, enter "0".arrow_forward
- On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August: A. Opened a business bank account with a deposit of $35,000 in exchange for common stock. B. Purchased supplies on account, $2,750. C. Paid creditor on account, $1,800. D. Earned sales commissions, receiving cash, $52,800. E. Paid rent on office and equipment for the month, $4,500. F. Paid dividends, $3,000. G. Paid automobile expenses for month, $1,100, and miscellaneous expenses, $1,200. H. Paid office salaries, $5,250. I. Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000. With this information being used, I need to make an accounting equation grid?arrow_forwardYou are provided with the following information of John Mlachake for the month of March 2014 March: 1 Started his business with capital in cash of Kshs. 800,000 and Kshs 2,200,000 in the bank. 2 Bought goods on credit from the following persons: J Ward Kshs 610,000; P Green Kshs. 214,000: M Taylor Kshs Kshs174,000; S Gemmill Kshs 345,000; P Tone Kshs 542,000. 4 Sold goods on credit to: J Sharpe Kshs 340,000; G Boycott Kshs 720,000; F Titmus Kshs 1,152,000. 6 Paid rent by cash Kshs 180,000 9 J Sharpe paid us his account by cheque Kshs 340,000. 10 F Titmus paid us Kshs 1,000,000 by cheque. 12 We paid the following by cheque: M Taylor Kshs 174,000; J Ward Kshs 610,000. 15 Paid carriage by cash Kshs 38,000. 18 Bought goods on credit from P Green Kshs 291,000; S Gemmill Kshs 940,000. 21 Sold goods on credit to G Boycott Kshs 810,000. 31 Paid rent by cheque Kshs Kshs 230,000. Required to: Enter the above transactions in the ledger accounts and balance off the accounts.arrow_forwardOn August 1, 2016, Bill Hudson established Heritage Realty, which completed the fol- lowing transactions during the month: a. Bill Hudson transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $30,000. b. Paid rent on office and equipment for the month, $3,250. c. Purchased supplies on account, $2,150. d. Paid creditor on account, $875. e. Earned sales commissions, receiving cash, $14,440. f. Paid automobile expenses (including rental charge) for month, $1,580, and miscel- laneous expenses, $650. g. Paid office salaries, $3,000. h. Determined that the cost of supplies used was $1,300. i. Paid dividends, $2,500. Instructions : Q. 1 Journalize the transactions shown above. Q. 2 Post to the ledger and display the balance in each account after all the transactions have been posted. Q. 3 Prepare unadjusted trial balance, for the month of August 31, 2016. Q. 4 Determine the following: a. Amount of total revenue recorded in the…arrow_forward
- Question1: On July 1, 2016, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: a. Opened a business bank account with a deposit of $25,000 in exchange for common stock. b. Purchased office supplies on account, $1,850. c. Paid creditor on account, $1,200. d. Earned sales commissions, receiving cash, $41,500. e. Paid rent on office and equipment for the month, $3,600. f. Paid dividends, $4,000. g. Paid automobile expenses (including rental charge) for month, $3,050, and miscellaneous expenses, $1,600. h. Paid office salaries, $5,000. i. Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets - Llabilities 4 Stockholders Equity Supplies Dividends + Commissions - Expense - Expense - Expense - Expense Misc Expense Accounts Common Sales Salaries Rent…arrow_forwardOn November 1, 2018, Kris Lehman established an interior decorating business. Modem Designs. During the month, Kris completed the following transactions related to die business: Nov. 1 . Kris transferred cash from a personal bank account to an account to be used forthe business in exchange for common stock, $36,000. 1 . Paid rent for period of November 1 to end of month, $4,000. 6. Purchased office equipment on account, $16,000. 8. Purchased a truck for $43,000 paying $4,300 cash and giving a note payable for theremainder. 10. Purchased supplies for cash, $1,860 12. Received cash for job completed, $8,000. 15. Paid annual premiums on property and casualty insurance, $2,400. 23. Recorded jobs completed on account and sent invoices to customers, $15,500 24. Received an invoice for truck expenses, to be paid in November. $1,250 Enter the following transactions on Page 2 of the two-column journal: 29. . Paid utilities expense. $3,660. 29. Paid miscellaneous…arrow_forwardGiven below are the business transactions of Simba Enterprise, during the month of November 2016: 2016 November 5 Purchased goods worth RM4,500 from Abu on credit. Transactions 8 Credit sales to Sara worth RM2,100. 9 Purchased furniture worth RM8,400 from Saga Perabot and paid RM1,400 by cheque. 10 Received commission worth RM3,700 by cheque. 11 Simba took out RM550 goods for personal use. 12 Return inwards of RM620 from Sara because of damaged goods. 15 Cash sales to Bismi worth RM6,900. 19 Received rent RM3,300 by cheque. 21 Returned damaged goods worth RM880 to Abu. 23 Paid insurance by cheque RM1,200. 25 Simba received a cheque from Aprilbank worth RM50,000 for a 3 years 10% term loan. 26 Simba brought in his own computer worth RM9,000 into the business. 29 Purchased stationery RM200 by cash for business use. 31 Paid interest on loan RM2,300 by cash. Required: State the effects (increase/decrease) on assets, liabilities, revenues, expenses or owner' equity for the transactions…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY