BAF3M (2012): Financial Accounting Principles (2012), Grade 11

Unit 2:Balance Sheet and Transactions

Activity 2: Business Transactions

Assignment #1 - Assessing Business Transactions

Name _______________________

For each of the transactions listed below,

determine the balance sheet accounts affected;

indicate whether they are increased or decreased, and;

state the value of the change.

Increase

Decrease

Amount

Example:Purchased equipment for $2 000 cash.

Equipment

$2 000

Cash

$2 000

a)Received $1 800 payment from customers for previous purchases on credit.

b)Owner invested $5 000 in the business.

c)Paid salaries totaling $2 000 to employees.

d)Purchased $15 000 automobile on credit.

e)Purchased new office building; paid $200 000 cash and took out mortgage for $300000.

f)Received $850 for the sale of an old piece of equipment.

g)Paid $890 for repairs to building.

Hint: When repairs occur, this does not increase the value of the building but rather reduces owner's equity.

h)Paid $8 000 toward amount owing for automobile purchased previously.

i)Performed accounting services for $4 500 and was paid cash.

j)Sent a bill for $4 200 to a customer for accounting services; to be paid later.