Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 3, Problem 3.3E
To determine
Transaction:
A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.
The accounting equation implies the relationship between the assets, liabilities, and the
To show: The effects of each transaction on the accounting equation.
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During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31.
1.
Issued common shares to investors in exchange for $ 90,000 in cash.
2.
Borrowed $ 46,000 cash from the bank, due 2020.
3.
Purchased delivery vehicles for $ 61,000 cash.
4.
Received $ 24,000 from customers for services provided.
5.
Purchased supplies for $ 3,700 on account.
6.
Paid rent of $ 5,500.
7.
Performed services on account for $ 9,000.
8.
Paid salaries of $ 28,000.
9.
Declared and paid a dividend of $ 12,000 to shareholders.
10.
Paid income taxes of $ 200 for the month.
Indicate the effect of each transaction on the accounting equation. Use the following format. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or in parenthesis e.g. (15,000).)
Assets
=
Liabilities
+
Shareholders’ Equity…
During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31.
1.
Issued common shares to investors in exchange for $ 90,000 in cash.
2.
Borrowed $ 46,000 cash from the bank, due 2020.
3.
Purchased delivery vehicles for $ 61,000 cash.
4.
Received $ 24,000 from customers for services provided.
5.
Purchased supplies for $ 3,700 on account.
6.
Paid rent of $ 5,500.
7.
Performed services on account for $ 9,000.
8.
Paid salaries of $ 28,000.
9.
Declared and paid a dividend of $ 12,000 to shareholders.
10.
Paid income taxes of $ 200 for the month.
Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Sr No
Account Titles and…
During 2022, its first year of operations as a delivery service, Novak Corp. entered into the following transactions.
1.
Issued shares of common stock to investors in exchange for $122,000 in cash.
2.
Borrowed $48,000 by issuing bonds.
3.
Purchased delivery trucks for $52,000 cash.
4.
Received $16,000 from customers for services performed.
5.
Purchased supplies for $4,700 on account.
6.
Paid rent of $5,800.
7.
Performed services on account for $11,800.
8.
Paid salaries of $26,700.
9.
Paid a dividend of $11,500 to shareholders.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to
Stockholders' Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative
sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced, see Illustration 3-4 for
example.)
Chapter 3 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 3 - Prob. 1QCh. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9QCh. 3 - What is the normal balance for each of these...
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 3.1BECh. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.9BECh. 3 - Selected transactions for Montes Company are...Ch. 3 - Prob. 3.11BECh. 3 - Prob. 3.12BECh. 3 - Prob. 3.1DIECh. 3 - Prob. 3.2DIECh. 3 - Prob. 3.3DIECh. 3 - Prob. 3.4DIECh. 3 - Prob. 3.5DIECh. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Prob. 3.7APCh. 3 - Prob. 3.8APCh. 3 - Prob. 3.9APCh. 3 - Prob. 3.10APCh. 3 - Prob. 3.11APCh. 3 - Prob. 3.1EYCTCh. 3 - Prob. 3.2EYCTCh. 3 - Prob. 3.3EYCTCh. 3 - Prob. 3.4EYCTCh. 3 - Prob. 3.6EYCTCh. 3 - Prob. 3.7EYCTCh. 3 - Prob. 3.8EYCTCh. 3 - Prob. 3.9EYCTCh. 3 - Prob. 3.11EYCTCh. 3 - Prob. 3.1IFRS
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