Question
Show the effects of each transaction on the accounting equation by indicating under the proper heading the dollar amount of increase or decrease for each
Show the effects of each transaction on the accounting equation by indicating under the proper heading the dollar amount of increase or decrease for each transaction listed below. Compute the resulting accounting equation.
| a. | Owner deposited $20,000 in his new business checking account. |
| b. | Supplies were purchased for $300 on account. |
| c. | Paid a $1,200 premium for six months of liability insurance. |
| d. | Purchased supplies for $200 cash. |
| e. | Purchased equipment for $4,000 by paying $1,000; the rest to be paid in six months. |
| f. | Paid the $300 bill outstanding (from transaction b). |
| g. | Owner withdrew $700 from the business for personal use. |
| ASSETS | = | LIAB. | + |
| OWNER'S EQUITY |
| |||||||
| Cash | + | Supp. | + | Prep. Insur. | + | Equip | = | Accts. Pay. | + | Capital | - | Drawing | |
| a. | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | ||||||
| b. | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | fill in the blank 14 | ||||||
| c. | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | ||||||
| d. | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 | ||||||
| e. | fill in the blank 29 | fill in the blank 30 | fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 | ||||||
| f. | fill in the blank 36 | fill in the blank 37 | fill in the blank 38 | fill in the blank 39 | fill in the blank 40 | fill in the blank 41 | fill in the blank 42 | ||||||
| g. | fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | fill in the blank 47 | fill in the blank 48 | fill in the blank 49 | ||||||
| fill in the blank 50 | fill in the blank 51 | fill in the blank 52 | fill in the blank 53 | fill in the blank 54 | fill in the blank 55 | fill in the blank 56 |
| PROOF | |||
| Cash | fill in the blank 57 | Accounts Payable | fill in the blank 58 |
| Supplies | fill in the blank 59 | Capital | fill in the blank 60 |
| Prepaid Insurance | fill in the blank 61 | Drawing | fill in the blank 62 |
| Equipment | fill in the blank 63 |
| |
| fill in the blank 64 | fill in the blank 65 |
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
