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 2.4BE
Analyze the Impact of transactions on the
The following transactions occur for Badger Biking Company during the month of June:
a. Provide services to customers on account for $50,000.
b. Receive cash of $42,000 from customers in (a) above.
c. Purchase bike equipment by signing a note with the bank for $35,000.
d. Pay utilities of $5,000 for the current month.
Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.
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Students have asked these similar questions
1. Borrows $8,500 of cash from the bank by signing a formal agreement to repay the loan in 2 years.
2. Buys $6,800 of new equipment on account.
3. Pays off $4,800 of accounts payable.
4. Pays off $2,400 of notes payable.
Required:
a. Show the effect of these transactions on the basic accounting equation.
b. Prepare the journal entries that would be used to record the transactions.
Complete this question by entering your answers in the tabs below.
Required A Required B
Show the effect of these transactions on the basic accounting equation. (Enter any decreases to account balances with a minus sign.)
Transaction Analysis
Liabilities
1. Cash
2. Equipment
3.
Assets
Accounts Pavable
35,261
31
3,200 = Accounts Payable
6,800 - Accounts Payable
II
3,200 +
(6,800) +
tv
Stockholders' Equity
Next >
=
CALONG
X
Help
Sav
C
Requirement 2:Prepare the journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Requirement 1:
a. Accounts Receivable had a balance of $1,320 at the beginning of the month and $990 at the end of the month. Credit sales totaled $13,200 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account.
b. The Supplies account had a balance of $594 at the beginning of the month and $803 at the end of the month. The cost of supplies used during the month was $2,574. Calculate the cost of supplies purchased during the month.
c. Wages Payable had a balance of $451 at the beginning of the month. During the month, $4,180 of wages were paid to employees. Wages Expense accrued during the month totaled $4,510. Calculate the balance of Wages Payable at the end of the month.
General Journal entries
You are required to prepare a written report for the following tasks:
Transactions for the month of January of Joy Delights Café are given as the following.
2021
Started in business with RM105,000 cash
Put RM90,000 of the cash into a bank account
Bought goods for cash RM5,500
Bought goods on credit from: Eddy RM800; Franky RM930; Smith
RM160, Liew RM510
Bought stationery on credit from Buttons Ltd RM89
Sold goods on credit to: Tomy RM170; Eric RM240; Malcom
RM326; Tim RM204.
Paid rent by cheque RM220
Bought fixtures on credit from Chiefs Bhd RM610.
Paid salaries in cash RM790.
Jan
4
6.
10
11
Returned goods to Franky RM30; Smith RM42.
Bought van by cheque RM6,500.
Received loan from Barclay by cheque RM2,000.
18
14
15
16
Purchases retum: Temy RM5; Malcom RM20.
21
Cash sales RM145
Sold goods on credit to Eric RM130, Tim RM410, Paul RM15S.
Ravilink paid the following by cheque Franky RM900 Smith RM118.
Received cheques from Paul RM158; Eric RM370.
24
26
29
Received a further loan from…
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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