ACCOUNTING EQUATION WORKSHEET :-

CHOOSE 5 CORRECT OPTIONS FOR THE DESCRIPTION OF THE TRANSACTION FROM THE FOLLOWING :-

Analyze the following accounting equation worksheet for Sealy Yacht Repair Corporation and explain the transaction or event that resulted in each entry. (Click the icon to view the accounting equation worksheet.) Select the description that best describes each entry Description of the transaction 1. 2. 3. 4. 5. Assets All other +Capital Earnings Liabilities All Common stock $152,000 Cash assets (Account) liabilities (Account) (Account) 1.$ 152,000 Property 2. 150,000) 150,000 plant and equipment 70,000 (1,300) 1,300 Supplies (1,150) 1,150 Prepaid 70,000 Notes pay 3. 4 insurance Service 15,000 6 15,000 rev (625) Supplies 7. (625) Supplies expense (575) Prepaid 8 (575) Insurance insurance expense Salaries Salaries 1,000 pay 9. (1,000) exp. (3,900) Depreciation 10 (3,900) Accumulated depreciation expense (425) Interest expense 425 Interest payable Description of the transac on At tne ena or tne year oniy nair or tne prepaia insurance remainea. At the end of the year the company owed but had not paid salaries. 2 3.1 Collected cash on accounts receivable 4. Depreciation expense for the property and equipment for the year 5. Earned cash service revenues Earned revenue on account Interest owed on the note but not paid at the end of the year. Insurance was paid in advance. Land purchased with a long-term notely Paid dividends cash. Sealy Yacht Repair Corporation was formed when it issued stock for a cash contributions 2 Chc Sealy purchased property and equipment. Supplies were purchased with cash The company signed a long-term note payable and received cash. Used supplies previouslv purchased