Financial and Managerial Accounting - CengageNow
15th Edition
ISBN: 9781337911979
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 1, Problem 4PB
Transactions; financial statements
2. Net income: $10,850
On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
a. Opened a business bank account with a deposit of $24,000 in exchange for common stock.
b. Paid rent on office and equipment for the month, $3,600.
c. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.
d. Purchased supplies on account, $1,200.
e. Earned sales commissions, receiving cash, $19,800.
f. Paid creditor on account, $750.
g. Paid office salaries, $2,500.
h. Paid dividends, $3,500.
i. Determined that the cost of supplies on hand was $300; 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:
2. Prepare an income statement for April, a statement of stockholders’ equity for April, and a
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Debit and Credit Effect on Transactions
Jefferson Framers engaged in the following transactions:
a. Purchased land for $65,000 cash.
b. Purchased equipment for $26,400 in exchange for a 1-year, 8% note payable.
c. Purchased office supplies on credit for $1,200 from Office Depot.
d. Paid $20,000 principal plus $700 interest on a note payable.
e. Paid an account payable in the amount of $3,550.
f. Provided $61,300 of services on credit.
g. Provided $12,800 of services for cash.
h. Collected $26,910 of accounts receivable.
1. Paid $12,760 of wages in cash.
j. Issued common stock for $45,000 cash.
Required:
Select the correct information for each transaction. Enter the debits before the credits. Transaction a is entered as an example.
Transaction
Account
Increase/Decrease
Amount
Increase
$65,000
Decrease
$65,000
a.
Land
Cash
Debit/Credit
Debit
Credit
Questions:
The following is a summary of Jane’s bank account for the year ended 31 December 2021:
$ $
Balance 1.January .2002 4,100 Payments to creditors for goods 67,360
Receipts from debtors 91,190 Rent 3,950
Balance 31Dec.2002 6,300 Insurance 1,470
Sundry expenses 610
Drawings 28,200
101,590 101,590
All of the…
form the Journal entry of the given transaction:
date/s
transaction
debit
credit
Sep-02
Garcia invested P30,000 cash to start his business.
2
Purchased medical Supplies on account, P10,000
3
Paid monthly office rent of P4,000.
4
Recorded P5,000 revenue for service rendered to patients: received cash of P2,000 and sent bills to patients for the remainder.
10
Borrowed P50,000 from the bank, signing a note payable
15
Performed service for patients on account, P3,600
22
Received cash from patients billed on September 3, P2,000
25
Received and paid a utility bill, P200
26
Paid monthly salary to nurses, P3,000
30
Paid interest expense of P200
Chapter 1 Solutions
Financial and Managerial Accounting - CengageNow
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