Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2.8ME
Identifying Events as Accounting Transactions
Half Price Books is the country’s largest family-owned new and used bookstore chain. Do the following events result in a recordable transaction for Half Price Books? Answer yes or no for each.
______ 1. Half Price Books bought an old Laundromat in Dallas.
______ 2. The privately held company issued stock to new investors.
______ 3. The company signed an agreement to rent store space in Columbia Plaza near Cleveland.
______ 4. The company paid for renovations to prepare its Seattle store for operations.
______ 5. The vice president of the company spoke at a literacy luncheon in Indiana, which contributed to. building the company’s reputation as a responsible company.
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Assume that a relatively new company you and you group members are involved wilth has presented you with the
following transactions for 2021 from the books of the business. This company operates one bank account to reflect
all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant
documents and bocks as outlined in the requirements below.
1 Aug
Started business with $150, 000 in the bank
3 Aug
Bought supplies on credit from Right Way Manufacturers
24 Boxes Air Filter
96 Bottles fuel injector cleaner
48 Boxes Spark Plug
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$720.00 per box
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
e
24 Boxes Disc Pads
x
5 Aug
Provided services for cash less 10% discount
12 small motorbike engines
6 large motorbike engines (ful service)
8 medium size motorbike engines (full service)
$350.00 per engine
$950.00 per engine
$a00.00 per engine
7 Aug
Paid Rent by cheque
$5,000.00
10 Aug
Paid Wages by cheque…
Analyse the effect of the following transactions that took place in the books of Johnson’s Ltd in June 2023 on the accounting equation using the format below: Example: The owner withdrew R1000 from the business bank account to buy a necklace for his son on his birthday. Transaction day Account debited Assets = Owner’s equity Example Account credited Drawings Bank -R1000 + Liabilities -R1000
Create a Ledger.
Transaction for the JHARA DISTRIBUTORS for April 2021 follows:
Chapter 2 Solutions
Fundamentals of Financial Accounting
Ch. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Define a transaction anti give an example of each...Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the basic accounting equation?Ch. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - What is a journal entry? What is the typical...Ch. 2 - What is a T-account? What is its purpose?Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Which of the following is not an asset account? a....Ch. 2 - Which of the following statements describe...Ch. 2 - Total assets on a balance sheet prepared on any...Ch. 2 - The duality of effects can best be described as...Ch. 2 - The T-account is used to summarize which of the...Ch. 2 - Prob. 6MCCh. 2 - A company was recently formed with 50,000 cash...Ch. 2 - Which of the following statements would be...Ch. 2 - Prob. 9MCCh. 2 - Prob. 10MCCh. 2 - Prob. 2.1MECh. 2 - Prob. 2.2MECh. 2 - Matching Terms with Definitions Match each term...Ch. 2 - Prob. 2.4MECh. 2 - Prob. 2.5MECh. 2 - Prob. 2.6MECh. 2 - Prob. 2.7MECh. 2 - Identifying Events as Accounting Transactions Half...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Preparing Journal Entries For each of the...Ch. 2 - Posting to T-Accounts For each of the transactions...Ch. 2 - Reporting a Classified Balance Sheet Given the...Ch. 2 - Prob. 2.13MECh. 2 - Prob. 2.14MECh. 2 - Identifying Transactions and Preparing Journal...Ch. 2 - Prob. 2.16MECh. 2 - Prob. 2.17MECh. 2 - Prob. 2.18MECh. 2 - Prob. 2.19MECh. 2 - Prob. 2.20MECh. 2 - Prob. 2.21MECh. 2 - Prob. 2.22MECh. 2 - Prob. 2.23MECh. 2 - Prob. 2.24MECh. 2 - Prob. 2.25MECh. 2 - Prob. 2.1ECh. 2 - Prob. 2.2ECh. 2 - Classifying Accounts and Their Usual Balances As...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Prob. 2.5ECh. 2 - Recording Journal Entries Refer to E2-4. Required:...Ch. 2 - Prob. 2.7ECh. 2 - Analyzing the Effects of Transactions in...Ch. 2 - Inferring Investing and Financing Transactions and...Ch. 2 - Analyzing Accounting Equation Effects, Recording...Ch. 2 - Recording Journal Entries and Preparing a...Ch. 2 - Analyzing the Effects of Transactions Using...Ch. 2 - Explaining the Effects of Transactions on Balance...Ch. 2 - Prob. 2.14ECh. 2 - Prob. 2.15ECh. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Prob. 2.2PBCh. 2 - Prob. 2.3PBCh. 2 - Prob. 2.1SDCCh. 2 - Prob. 2.2SDCCh. 2 - Prob. 2.4SDCCh. 2 - Prob. 2.5SDCCh. 2 - Accounting for the Establishment of a Business...
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