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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The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
Issued 30,000 shares of capital stock in exchange for $300,000 in cash.
Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
Paid $5,000 in rent on the warehouse building for the month of March.
Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.
Paid $70,000 on account for the merchandise purchased in 3.
Collected $55,000 from customers on account.
Recorded depreciation expense of $1,000 for the month on the equipment.
Required:1. Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or…
Coleman Motors, Inc., was formed on January 1,2018. The following transactions occurred during 2018:On January 1, 2018, Coleman issued its common stock for $350,000. Early in January,Coleman made the following cash payments:a. $140,000 for equipmentb. $175,000 for inventory (five cars at $35,000 each)c. $19,000 for 2018 rent on a store buildingIn February, Coleman purchased six cars for inventory on account. The cost of this inventorywas $282,000 ($47,000 per car). Before year-end, the company paid off $197,400 of this debt.The company uses the first-in, first-out (FIFO) method to account for its inventory.During 2018, Coleman sold six autos for a total of $426,000. Before year-end, it had collected 90% of this amount.The business employs three people. The combined annual payroll is $90,000, of which Coleman owes $5,000 at year-end. At the end of the year, the company paid income taxes of $14,000.Late in 2018, Coleman declared and paid cash dividends of $29,000.For equipment, Coleman…
A company's January 1, 2016 balance sheet reported total assets of $150,000 and total liabilities of $60,000.
During January 2016, the company completed the following transactions: (A) paid a note payable using $10,000
cash (no interest was paid); (B) collected a $9,000 accounts receivable; (C) paid a $5,000 accounts payable; and (D)
purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank. The company's January 31,
2016 balance sheet would report which of the following?
Select one:
a.
Stockholder's
Assets
Liabilities
Equity
$170,000
$100,000
$70,000
b.
Stockholder's
Assets
Liabilities
Equity
$160,000
$75,000
$85,000
С.
Stockholder's
Assets
Liabilities
Equity
$150,000
$60,000
$90,000
d.
Stockholder's
Assets
Liabilities
Equity
$155,000
$65,000
$90,000
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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