Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2.2BE
Balance the
Using the notion that the accounting equation (Assets = Liabilities + Stockholders’ Equity) must remain in balance, indicate whether each of the following transactions is possible.
a. Cash increases; Accounts Pas-able decreases.
b. Service Revenue increases; Salaries Payable increases.
c. Advertising Expense increases; Cash decreases.
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4) What is the impact of establishing the allowance to the horizontal equation? (in each box, put a - for
decrease, a + for increase, or NA if no change)
Liabilities
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Revenues
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Net
Cash
Assets
Income
Flow
5) When a specific account is deemed uncollectible and should be written off, what is the impact to the
horizontal equation? (in each box, put a - for decrease, a + for increase, or NA if no change)
Stockholders' Equity
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Cash
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When there is Debit, some accounts increase and some decrease.
Which among the following accounts will increase with a debit?
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When there is Debit, some accounts increase and some decrease. Which among the following accounts will increase with a debit?
a.Capital
b.Accounts payable
c.Furniture
d.Service revenue
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1RQCh. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - 10.Suzanne knows that an increase to an expense...
Ch. 2 - 11.What is a journal? What is a journal entry?Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - 15.Describe the events that correspond to the...Ch. 2 - 16.What does a T-account represent? What is the...Ch. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - 20.If total debits equal total credits in the...Ch. 2 - List steps in the measurement process (LO21) Below...Ch. 2 - Balance the accounting equation (LO22) Using the...Ch. 2 - Suppose a local company has the following balance...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the effect of debits and credits on...Ch. 2 - Prob. 2.6BECh. 2 - Record transactions (LO24) The following...Ch. 2 - Prob. 2.8BECh. 2 - Analyze T-accounts (LO25) Consider the following...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.11BECh. 2 - Correct a trial balance (LO26) Your study partner...Ch. 2 - Listed below are several terms and phrases...Ch. 2 - Prob. 2.2ECh. 2 - Analyze the Impact of transactions on the...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the components of retained earnings...Ch. 2 - Indicate the debit or credit balance of accounts...Ch. 2 - Associate debits and credits with external...Ch. 2 - Prob. 2.8ECh. 2 - Identify transactions (LO24) Below are recorded...Ch. 2 - Prob. 2.10ECh. 2 - Record transactions (LO24) Bearcat Construction...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Prob. 2.14ECh. 2 - Post transactions to T-accounts (LO25) Consider...Ch. 2 - Identify transaction (LO25) Below are T-accounts....Ch. 2 - Prob. 2.17ECh. 2 - Prepare o trial balance (LO26) Below is the...Ch. 2 - Prob. 2.19ECh. 2 - Prob. 2.20ECh. 2 - Below is a list of activities for Jayhawk...Ch. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Refer to the transactions described in P24A. Keep...Ch. 2 - Prepare a trial balance (LO26) Below are the...Ch. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Analyze the impact of transactions on the...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Record transactions (LO24) Flip Side of P25B Eli...Ch. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.9BPCh. 2 - Prob. 2.1APCPCh. 2 - Prob. 2.2APFACh. 2 - The Buckle, Inc. Financial Analysis Financial...Ch. 2 - Prob. 2.4APCACh. 2 - Prob. 2.5APECh. 2 - Prob. 2.6APIRCh. 2 - Prob. 2.7APWC
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- What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changesarrow_forwardWhen there is Debit, some accounts increase and some decrease. Which among the following accounts will increase with a debit? O a. Furniture O b. Accounts payable O C. Capital O d. Service revenuearrow_forwardA ____ decreases the left side of the fundamental accounting equation. A. Credit b. Debitarrow_forward
- What is the impact on the accounting equation when an accounts receivable is collected?A. both sides increaseB. both sides decreaseC. only the Asset side changesD. the total of neither side changesarrow_forwardIdentify the missing information from the accounting equation. Signify increases as Incr. and decreases as Decr. In each box you have the options: -Assets -Credit -Debit -Decr. -Equity -Incr. -Liabilities -Owner, Withdrawalsarrow_forwardWhich among the following accounts will increase with a debit? a. Service revenue b. Capital c. Furniture d. Accounts payablearrow_forward
- Use the following to answer questions 16 - 19 For each transaction indicate whether it should: A. increase, B. decrease, or C. no effect. Credit sales transaction cycle Assets Liabilities Stockholders' equity Revenues Expenses 16. Provide services on account 17. Estimate uncollectible accounts 18. Write off accounts as uncollectible 19. Collect on account previously written offarrow_forwardWhich of the following statements are true? 1. Debits represent decreases and Credits represent increases 2. Debits must always equal Credits 3. Assets have normal Debit balances while Liabilities and Stockholders' equity have normal Credit balancesarrow_forward3) State the decrease side (debit or credit) for each of the following accounts. a. Prepaid Expenses b. Contributed Capital c. Buildings d. Unearned Revenue e. Dividends f. Notes Receivable g. Interest Payable h. Sales Revenue i. Cost of Salesarrow_forward
- 2. Debits; a. increase both assets and liabilities b. decrease both assets and liabilities c. increase assets and decrease liabilities d. decrease assets and decrease liabilities 3. A revenue account; a. is increased by debits b. is decreased by credits c. has a normal balance of a debit d. is increased by credits Ouner's Equity Debit for Credit for decrease increase Dr Cr Normal Balance 4. Account that normally have debit balances are: a. assets, expenses, and revenue b. assets, expenses, and owner's equity c. assets, liabilities, and owner's drawings d. assets, owner's drawings, and expenses 5. Expenses; Revenue Debit for decrease Credit for increase a. is increased by debits b. is decreased by credits c. has a normal balance of a debit d. is increased by credits Dr Cr Nomal Balance 6. Account payable; a. is increased by debits b. is decreased by credits c. has a normal balance of a credit d. none all above Expenses Debit for Credit for decrease Cr 7. Supplies; increase a. has a…arrow_forwardMultiple choice: 1. Which if the following us correct concerning a T account? A. The left side is the decrease side for assets B. The right side is the decrease side for liabilities C. The right side is the increase side for revenue D. The left side is the decrease side for expenses 2. Which of the following is not true concerning T accounts? A. The right side of a revenue account is an increase B. The left side of an expense account is an increase C. The left side of an asset account is an increase D. The left side of a liability account is an increasearrow_forwardKindly indicate the impact of each transaction on balance sheet items i.e. Assets, Liabilities and Owner’s Equity in Table 1 Given Below.Use the Following signs for each transaction under the relevant item.1. + The item is increased due to the transaction.2. – The item is decreased due to the transaction.3. + /- One item is increased and another is decreased due to the transaction.Table 1: S.No Transaction Assets Liabilities Equity 1 Investment made by the owner 2 Equipment purchased on account 3 Office equipment purchased with cash 4 A bank loan was received in cash by the firm 5 Equipment Sold 6 More Equipment were purchased with Cash 7 The loan lent by the bank was repaid by the firm 8 Cash Withdrawals by the owner 9 Cash received from an account customer 10 Purchased Land, paid half in cash and half on creditarrow_forward
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