Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 4, Problem 4.1E
Transaction Analysis. The following transactions are taken from the books of Miller Manufacturing.
- a. Bought office equipment with cash, $30,000.
- b. Bought supplies on credit from a vendor, $15,000.
- c. Sold goods for cash, $40,000 (ignore the inventory and cost of goods sold entry of this transaction).
- d. Bought raw materials from a supplier on account, $22,000.
- e. Sold goods to customers on account, $65,000 (ignore the inventory and cost of goods sold entry of this transaction).
- f. Purchased raw materials by issuing a note payable, $14,000.
- g. Paid cash toward note payable balance, $4,000.
- h. Received cash from customer to apply to credit account balance, $3,000.
- i. Paid for accounting and legal fees in cash, $5,000
- j. Paid salaries in cash, $12,000.
Show the effect of each transaction on assets, liabilities, and equity using the
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Students have asked these similar questions
Based on the following transactions, answer the following questions. i. Purchased inventory with a cost of $
24,800 on account. ii. Sales on account to customers totalled $57,800. iii. Payments made to employees for
wages totalled $17,700. iv. Cash collections from customers settling their accounts totalled $41,700. v.
Invoice received from the utility company for $3,800 is due in 30 days. vi. Payments totalling $16,900 were
made to suppliers to settle part of the balance owing to them. vii. Received a deposit of $2,200 from a
customer for goods to be delivered next month. Calculate the revenue,expenses and net income
Suppose your company sells goods for $300, of which $200 is received in cash and $100 is on account. The goods cost your company $125 and were paid for in a previous period. Your company also recorded salaries and wages of $70, of which only $30 has been paid in cash.
prepare journal entries
a) Record the sales revenue of $200 for cash and $100 on account and record the cost of goods sold of $125 using one journal entry.
b) Record the salaries and wages expense of $70.
Based on the following transactions, answer the following questions.
i.
ii.
iii.
iv.
V.
vi.
vii.
(a)
Purchased inventory with a cost of $24,200 on account.
Sales on account to customers totalled $51,800.
Payments made to employees for wages totalled $17,800.
Cash collections from customers settling their accounts totalled $37,700.
Invoice received from the utility company for $4,200 is due in 30 days.
Payments totalling $17,100 were made to suppliers to settle part of the balance owing to them.
Received a deposit of $4,200 from a customer for goods to be delivered next month.
X Your answer is incorrect.
Calculate the revenues, expenses, net income that would be reported on the cash basis. (Enter loss amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).)
Revenues
Expenses
LA
tA
Net Income /(Loss) $
207,400
63,300
144,100
Chapter 4 Solutions
Intermediate Accounting
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