Analyze the effects of a Company's transactions on the accounting equation. Included are the following headings: Cash, Accounts Receivable (A/R), Office Supplies (Off. Sup.), Canoes; Accounts Payable (A/P), Utilities Payable (Util. Pay.), Telephone Payable (Tele. Pay.), Common Stock (CS), Dividends (Div.), Canoe Rental Revenue (Rent. Rev.), Rent Expense (Rent Exp.), Utilities Expense (Util. Exp.), Wages Expense (Wage Exp.), and Telephone Expense (Tele. Exp.). Nov. 1 Received $16,000 cash to begin the company and issued common stock to Amber and Zack. Nov. 2 Signed a lease for a building and paid $1,200 for the first month's rent. Nov. 3 Purchased canoes for $4,800 on account. Nov. 4 Purchased office supplies on account, $750. Nov. 7 Earned $1,400 cash for rental of canoes. Nov. 13 Paid $1,500 cash for wages. Nov. 15 Paid $50 dividends to stockholders. Nov. 16 Received a bill for $150 for utilities. (Use separate payable account.) Nov. 20 Received a bill for $175 for cell phone expenses. (Use separate payable account.) Nov. 22 Rented canoes to Early Start Daycare on account, $3,000. Nov. 26 Paid $1,000 on account related to the November 3, 2024, purchase. Nov. 28 Received $750 from Early Start Daycare for canoe rental on November 22, 2024. Nov. 30 Paid $100 dividends to stockholders.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PB: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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Analyze the effects of

a Company's transactions on the accounting equation. Included are the following headings: Cash, Accounts Receivable (A/R), Office Supplies (Off. Sup.), Canoes; Accounts Payable (A/P), Utilities Payable (Util. Pay.), Telephone Payable (Tele. Pay.), Common Stock (CS), Dividends (Div.), Canoe Rental Revenue (Rent. Rev.), Rent Expense (Rent Exp.), Utilities Expense (Util. Exp.), Wages Expense (Wage Exp.), and Telephone Expense (Tele. Exp.).

Nov. 1

Received $16,000 cash to begin the company and issued common stock to Amber and Zack.

Nov. 2

Signed a lease for a building and paid $1,200 for the first month's rent.

Nov. 3

Purchased canoes for $4,800 on account.

Nov. 4

Purchased office supplies on account, $750.

Nov. 7

Earned $1,400 cash for rental of canoes.

Nov. 13

Paid $1,500 cash for wages.

Nov. 15

Paid $50 dividends to stockholders.

Nov. 16

Received a bill for $150 for utilities. (Use separate payable account.)

Nov. 20

Received a bill for $175 for cell phone expenses. (Use separate payable account.)

Nov. 22

Rented canoes to Early Start Daycare on account, $3,000.

Nov. 26

Paid $1,000 on account related to the November 3, 2024, purchase.

Nov. 28

Received $750 from Early Start Daycare for canoe rental on November 22, 2024.

Nov. 30

Paid $100 dividends to stockholders.

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