Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 1, Problem 1.1APR
Transactions
On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September:
- A. Opened a business bank account with a deposit of $36,000 in exchange for common stock.
- B. Purchased office supplies on account, $1,800.
- C. Received cash from fees earned for managing rental property, $6,750.
- D. Paid rent on office and equipment for the month, $5,000.
E. Paid creditors on account, $1,375.
- F. Billed customers for fees earned for managing rental property, $9,500.
- G. Paid automobile expenses for month, $840, and miscellaneous expenses, $960.
- H. Paid office salaries, $3,600.
- I. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450.
J. Paid dividends, $3,000.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
2. Briefly explain why issuing common stock and revenues increased stockholders’ equity, while dividends and expenses decreased stockholders’ equity.
3. Determine the net income for September.
4. How much did September's transactions increase or decrease
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Purchased office supplies on account, $3,010.
c. Paid creditor on account, $1,900.
d. Earned sales commissions, receiving cash, $30,690.
Transactions; Financial Statements
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $29,000 from personal funds.
b. Purchased office supplies on account, $2,940.
c. Paid creditor on account, $1,860.
d. Earned sales commissions, receiving cash, $29,990.
e. Paid rent on office and equipment for the month, $5,880.
f. Withdrew cash for personal use, $9,000.
g. Paid automobile expenses (indluding rental charge) for the month, $2,820, and miscellaneous expenses. S1,350.
h. Paid office salaries, $3,540.
i. Determined that the cost of supplies on hand was $990; therefore, the cost of supplies used was $1,950.
Required:
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank, If required, enter negative values as neg
Assets
- Liabilities +
Owner's Equity
Accounts
Pat Glenn,…
Transactions
On April 1 of the current year, Andrea Byrd established a business to manage rental property. She completed the following transactions during April:
Opened a business bank account with a deposit of $45,000 from personal funds.
Purchased office supplies on account, $2,000.
Received cash from fees earned for managing rental property, $8,500.
Paid rent on office and equipment for the month, $5,000.
Paid creditors on account, $1,375.
Billed customers for fees earned for managing rental property, $11,250.
Paid automobile expenses for month, $840, and miscellaneous expenses, $900.
Paid office salaries, $3,600.
Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450.
Withdrew cash for personal use, $2,000.
Required:
1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must enter subtractive or negative…
Chapter 1 Solutions
Corporate Financial Accounting
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - 5. On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Prob. 1.2BECh. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.5BECh. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation Determine the missing amount...Ch. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Prob. 1.11EXCh. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Prob. 1.19EXCh. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Prob. 1.23EXCh. 1 - Prob. 1.24EXCh. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1ADMCh. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Prob. 1.4ADMCh. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.3TIF
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Transactions; Financial Statements On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: a. Opened a business bank account with a deposit of $33,000 from personal funds. b. Purchased office supplies on account, $3,310. c. Paid creditor on account, $2,090. d. Earned sales commissions, receiving cash, $33,790. e. Paid rent on office and equipment for the month, $6,620. f. Withdrew cash for personal use, $10,000. g. Paid automobile expenses (including rental charge) for the month, $3,180, and miscellaneous expenses, $1,520. h. Paid office salaries, $3,990. i. Determined that the cost of supplies on hand was $1,120; therefore, the cost of supplies used was $2,190. Required: 1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers. Assets = Liabilities + Owner's Equity…arrow_forwardRecord each of these transactions in Journal entries and prepare the Ledger for Cash & Cash Equivalents, Accounts Receivable and Accounts Payable: 1st Sunny Barcelona started the business by depositing $50,000 received from the sale of capital stock in the company bank account. 22nd Purchased a building for $36,000, paying $6,000 in cash and issuing a note payable for the remaining $30,000. 25th Purchased tools and equipment on account, $13,800. 27th Sold some of the tools at a price equal to their cost, $1,800, collectible within 45 days. 2nd Received $600 in partial collection of the account receivable from the sale of tools. 7th Paid $6,800 in partial payment of an account payable. 11th Received $2,200 of sales revenue in cash. 2oth Purchased radio advertising from RAC105 to be aired in March. The cost was $470, payable within 30 days. 22nd Purchased office equipment for $15,000 cash. 26th Performed repair services and billed clients $2,000. The entire amount will…arrow_forwardTransactions; Financial Statements On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $3,080. c. Paid creditor on account, $1,950. d. Earned sales commissions, receiving cash, $31,380. e. Paid rent on office and equipment for the month, $6,150. f. Withdrew cash for personal use, $10,000. g. Paid automobile expenses (including rental charge) for the month, $2,950, and miscellaneous expenses, $1,410. h. Paid office salaries, $3,700. 1. Determined that the cost of supplies on hand was $1,040; therefore, the cost of supplies used was $2,040. Required: 1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers.arrow_forward
- Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for $1,500. Hannahs receivable has been outstanding for over 180 days, and Perry determines that the total amount is uncollectible and writes off all of Hannahs debt. Hannah later receives a windfall and pays the amount of her balance to Perry Corp. Required: Make the appropriate journal entries (if any) to record the receipt of $450 by Perry Corp.arrow_forwardTransactions; Financial Statements On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: Opened a business bank account with a deposit of $34,000 from personal funds. Purchased office supplies on account, $3,470. Paid creditor on account, $2,190. Earned sales commissions, receiving cash, $35,390. Paid rent on office and equipment for the month, $6,940. Withdrew cash for personal use, $11,000. Paid automobile expenses (including rental charge) for the month, $3,330, and miscellaneous expenses, $1,590. Paid office salaries, $4,180. Determined that the cost of supplies on hand was $1,170; therefore, the cost of supplies used was $2,300. Required: 1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers. Assets = Liabilities + Owner's Equity Cash +…arrow_forwardTransactions; financial statementsOn July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:a. Opened a business bank account with a deposit of $25,000 from personal funds.b. Purchased office supplies on account, $1,850.c. Paid creditor on account, $1,200.d. Earned sales commissions, receiving cash, $41,500.e. Paid rent on office and equipment for the month, $3,600.f. Withdrew cash for personal use, $4,000.g. Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600.h. Paid office salaries, $5,000.i. Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.Instructions1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: 2. Prepare an income statement for July, a statement of owner's equity for July, and a balance sheet as of July 31.arrow_forward
- On April 1, 2019, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:a. Opened a business bank account with a deposit of $24,000 from personal funds.b. Paid rent on office and equipment for the month, $3,600.c. Paid automobile expenses (including rental charge) for the month, $1,350, and miscellaneous expenses, $600.d. Purchased office supplies on account, $1,200.e. Earned sales commissions (revenue) from selling real estate, receiving cash, $19,800.f. Paid creditor on account, $750.g. Paid office salaries, $2,500.h. Withdrew cash for personal use, $3,500.i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.arrow_forwardOn July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:a. Opened a business bank account with a deposit of $25,000 from personal funds.b. Purchased office supplies on account, $1,850. c. Paid creditor on account, $1,200.d. Earned sales commissions, receiving cash, $41,500.e. Paid rent on office and equipment for the month, $3,600.f. Withdrew cash for personal use, $4,000.g. Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600.h. Paid office salaries, $5,000.i. Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.arrow_forwardTransactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: a. Opened a business bank account with a deposit of $47,000 from personal funds. b. Purchased office supplies on account, $3,100. c. Received cash from fees earned for managing rental property, $8,370. d. Paid rent on office and equipment for the month, $3,800. e. Paid creditors on account, $1,410. f. Billed customers for fees earned for managing rental property, $7,030. g. Paid automobile expenses (including rental charges) for the month, $840, and miscellaneous expenses, $420. h. Paid office salaries, $2,670. i. Determined that the cost of supplies on hand was $1,830; therefore, the cost of supplies used was $1,27o. j. Withdrew cash for personal use, $2,530. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For…arrow_forward
- Transactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $28,000 from personal funds. Purchased office supplies on account, $2,490. Received cash from fees earned for managing rental property, $6,980. Paid rent on office and equipment for the month, $3,050. Paid creditors on account, $1,130. Billed customers for fees earned for managing rental property, $5,650. Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340. Paid office salaries, $2,150. Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020. Withdrew cash for personal use, $2,030. Required: 1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must…arrow_forwardDomingo Company started its business on January 1, 2019. The following transactions occurredduring the month of May. Prepare the journal entries in the journal on Page 1.A. The owners invested $10,000 from their personal account to the business account.B. Paid rent $500 with check #101.C. Initiated a petty cash fund $500 with check #102.D. Received $1,000 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30days.G. Received $800 cash for services rendered.H. Paid wages $600, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77,miscellaneous expense $55. Cash on hand $11. Check #106.J. Increased petty cash by $30, check #107.arrow_forwardTransactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $28,000 from personal funds. Purchased office supplies on account, $2,490. Received cash from fees earned for managing rental property, $6,980. Paid rent on office and equipment for the month, $3,050. Paid creditors on account, $1,130. Billed customers for fees earned for managing rental property, $5,650. Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340. Paid office salaries, $2,150. Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020. Withdrew cash for personal use, $2,030. Required: 1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License