A-7 Using the fundamental equation of accounting, show how each transaction impacts the other. Create a T chart and Journal entry for each transaction. $1.$ 30,000 worth of supplies is purchased with cash. 2. $10,000 worth of supplies is used toprovide clients with goods and services. 3. Wages due to employees that had been previously recorded as a liability are now paid in cash in the amount of $50,000. 4. Bills are submitted to insurance companies in the amount of $90,000 for servicesrendered to patients. 5. Cash payments of $60,000 are received for services previously provided and billed. 6.$5,000 worth of additional supplies is purchased on account.

Introduction:In Every type of Accounts the left side of T Account is the debit side and the right…

Answered: Using the fundamental equation of…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.2E

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Maddie Inc. has the following transactions for its first month of business. A. What are the individual account balances, and the total balance, in the accounts receivable subsidiary ledger? B. What is the balance in the accounts receivable general ledger (control) account?
Piedmont Inc. has the following transactions for its first month of business: A. What are the individual account balances, and the total balance, in the accounts payable subsidiary ledger? B. What is the balance in the Accounts Payable general ledger account?
For each of the following, indicate if the statement reflects an input component, output component, or storage component of an accounting information system. A. A credit card scanner at a grocery store. B. A purchase order for 1,000 bottles of windshield washing fluid to be used as inventory by an auto parts store. C. A report of patients who missed appointments at a doctors office. D. A list of the days cash and credit sales. E. Electronic files containing a list of current customers.
Record all transactions in appropriate T-accounts (costs by nature), close all accounts and prepare an Income Statement.a) The company recorded an invoice for rubbish disposal in the current month; value 400.b) The company recorded bank fees; value 50.c) The company sold goods worth 2 000 for 3 500 on deferred payment.d) Goods were delivered to a customer – transport cost 500 and additional insurance cost of 200, both paid by bank money transfer..
The business collected $1,800 cash from Client B on account. The journal entry to record this transaction should include: A. Debiting Cash for $1,800 and Crediting Service revenue for $1,800 B. Debiting Accounts payable for $1,800 and Crediting Cash for $1,800 C. Debiting Cash for $1,800 and Crediting Accounts receivable for $1,800. D. Debiting Accounts receivable for $1,800 and Crediting Cash for $1,800
Record the following transactions. 1. Pay employee salaries of $600 by issuing checks. 2. Purchase computer equipment of $1,000 using a credit card. 3. Pay for maintenance of $400 for a company vehicle using a debit card.
A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts? a. debit Accounts Payable; credit Cash b. debit Accounts Receivable; credit Cash c. debit Cash; credit Accounts Payable d. debit Cash; credit Accounts Receivable
A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts? a.debit Cash; credit Accounts Receivable b.debit Accounts Payable; credit Cash c.debit Accounts Receivable; credit Cash d.debit Cash; credit Accounts Payable
An attorney performs services of $1,100 for a client and receives $400 cash, with theremainder on account. The journal entry for this transaction woulda. debit Cash, credit Service Revenue.b. debit Cash, credit Accounts Receivable, credit Service Revenue.c. debit Cash, debit Service Revenue, credit Accounts Receivable.d. debit Cash, debit Accounts Receivable, credit Service Revenue.
An attorney performs services of $1,100 for a client and receives $400 cash, with the remainder on account. The journal entry for this transaction would a. debit Cash, credit Service Revenue. b. debit Cash, credit Accounts Receivable, credit Service Revenue. c. debit Cash, debit Service Revenue, credit Accounts Receivable. d. debit Cash, debit Accounts Receivable, credit Service Revenue.
A business performs services for a customer for $26,000 on account. Which of the following accounts is credited? O A. Cash OB. Service Revenue OC. Accounts Payable O D. Accounts Receivable C
Assuming the entity bought 300,000 worth of supplies on account. The proper journal entry to this transaction is by debiting the Supplies account and crediting what account? a.) Accounts Receivable b.) Supplies Expense c.) Cash d.) Accounts Payable

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