COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 2, Problem 5DQ
Describe the effects of each of the following business transactions on assets, liabilities, and owner’s equity.
- a. Bought equipment on credit.
- b. Paid salaries to employees.
- c. Sold services for cash.
- d. Paid cash to a creditor.
- e. Bought furniture for cash.
- f. Sold services on credit.
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A business provider services to a customer on credit.Which of the following is correct:
A.Assets increase and liabilities decrease at the time the cash is collected
B.Assets increase and liabilities increase at the time of the sale
C.Assets increase and the owner's equity increases at the time the cash is collected
D.Assets increase and the owner's equity increases at the time of the sale
"1.What is revenue?
2.What are expenses?
3.How is net income determined?
4.How does net income affect owner’s equity?
5.Describe the effects of each of the following business transactions on assets, liabilities, and owner’s equity.
a.Bought equipment on credit.
b.Paid salaries to employees.
c.Sold services for cash.
d.Paid cash to a creditor.
e.Bought furniture for cash.
f.Sold services on credit.
Identify the impact of each of the given transactions on the accounting equation:
Transactions
a. The company pays workers for wages earned.
b. The company provides services for cash.
c. The company pays this period's water bill.
d. The owner invests cash in the business.
e. The company pays cash toward an account payable.
f. The company receives cash from an accounts receivable.
Impacts
Chapter 2 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 2 - What is a business transaction?Ch. 2 - Prob. 1.2SRQCh. 2 - Prob. 1.3SRQCh. 2 - Prob. 1.4SRECh. 2 - Prob. 1.5SRECh. 2 - Prob. 1.6SRACh. 2 - Prob. 2.1SRQCh. 2 - Prob. 2.2SRQCh. 2 - What information is included in the financial...Ch. 2 - Prob. 2.4SRE
Ch. 2 - Prob. 2.5SRECh. 2 - Prob. 2.6SRACh. 2 - Prob. 1CSRCh. 2 - Prob. 2CSRCh. 2 - Prob. 3CSRCh. 2 - Prob. 4CSRCh. 2 - Prob. 5CSRCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the effects of each of the following...Ch. 2 - What is the fundamental accounting equation?Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Computing net income or net loss. The Computer...Ch. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Preparing a statement of owners equity and a...Ch. 2 - Analyzing the effects of transactions on the...Ch. 2 - Prob. 2PACh. 2 - Prob. 3PACh. 2 - The following equation shows the transactions of...Ch. 2 - Prob. 1PBCh. 2 - Prob. 2PBCh. 2 - Prob. 3PBCh. 2 - Prob. 4PBCh. 2 - The following account balances are for William...Ch. 2 - Richard Harris opened a gym and fitness studio...Ch. 2 - Prob. 1MFCh. 2 - Prob. 2MFCh. 2 - Prob. 3MFCh. 2 - How does an accounting system help managers...Ch. 2 - Prob. 1ED
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- Name a source document that provides information about each of the following types of business transactions: a. Cash payment b. Cash receipt c. Sale of goods or services d. Purchase of goods or servicesarrow_forwardTo purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capitalarrow_forwardWhat is the effect on the accounting equation when a business purchases supplies on account?arrow_forward
- Identify the Impact of each of the given transactions on the accounting equation: a. The company purchases supplies on credit. b. The company pays cash toward an account payable. c. The owner invests land in the business. d. The company purchases supplies for cash. e. The company pays this period's electricity bill. f. The company pays workers for wages earned.arrow_forwardIt is the amount collected by the business in advance from the customers before the business actually provide the goods or services to the customers. a. Bank overdrafts b. Outstanding expenses c. Accounts payable d. Unearned revenuesarrow_forwardPreliminary course. Classify each of the following accounts as an asset, liability, equity, revenue or expense. a Sales. b Cost of goods sold. Accounts receivable. d Lease. e Mortgage loan. f Inventory or stock. g Advertising. h Interest paid on loans. i Bank overdraft. j Company car. k Equipment. I Land and buildings. m Owners' capital. n Accounts payable. Tax on net profit. p Telephone. q Accountant's fees. Wages. Cash. t Insurance. Retained profits. v Debentures.arrow_forward
- Describe the impact of each of these external transactions on the accounting equation. a. Receive a loan from the bank. b. Pay employee salaries for the current period. c. Receive cash from customers for services provided in the current period. d. Purchase equipment by paying cash.arrow_forwardWhat is the amount to be collected by the business from customer who receive the product or services with a promise to pay after some time? a. Supplier b. Accounts payable c. Creditor d. Accounts Receivablearrow_forwardUnder what circumstances would accounts receivable be posted as a credit balance : A. When the business provides additional credit to itscustomer B. When the business receives additional revenue C. when the business receives additional revenue D. When the business pays to its suppliersarrow_forward
- Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper. 1. These are the costs being incurred by the business in generating revenues a. Assets b. Expenses c. Liabilities d. Owner's Equity 2. An asset account that represents the amount of money owed by the customer to the business is c. Cash a. Accounts Payable b. Accounts Receivable d. Inventories 3. These are present obligations of an entity arising from past transactions or events c. Liabilities d. Revenues 4. These are resources controlled by the business as a result of past transactions and events and from a. Assets b. Expenses which future economic benefits are expected to flow to the business a. Assets c. Liabilities d. Revenues b. Expenses 5. It refers to open account which represent the amount of money owed by the business to creditor or suppliers a. Accounts Payable c. Prepaid Expenses b. Accounts Receivable d. Unearned Revenues 6. This represents earnings made by professionals or experts…arrow_forwardIndicate how the following transactions affect the accounting equation: The purchase of supplies on account a. b. The purchase of supplies for cash A withdraw by the owner to pay personal expenses C. Revenues received in cash d. Services performed on account e.arrow_forwardA business provides services to a customer on credit.Which of the following is correct: A.Assets increase and onwer's equity increases at the time the cash is collected B.Assets increase and liabilities increase at the time of the sale C.Assets increase and onwer's equity increases at the time of the sale D.Assets increase and liabilities decrease at the time the cash is collectedarrow_forward
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