Purchase Solution

show effect of the transaction entry or adjusting entry

Not what you're looking for?

Ask Custom Question

Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+) or subtraction ( ). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting owners' equity.

(1.) The firm borrowed $2,000 from the bank; a short-term note was signed.

(2.) Merchandise inventory costing $750 was purchased; cash of $200 was paid and the balance is due in 30 days.

(3.) Employee wages of $1,000 were accrued at the end of the month.

(4.) Merchandise that cost $350 was sold for $450 in cash.

(5.) Revenues from services during month totaled $6,500. Of this amount, $2,000 was received in cash and the balance is expected to be received within 30 days.

(6.) Interest of $240 has been earned on a note receivable, but has not yet been received.

------------------------------------------------------------------------------------------------------

Txn: Assets = Liabilities + Owners' Equity <-- Net Income
1.

2.

3.

4.

5.

6.

Purchase this Solution

Solution Summary

Response is given in excel so you have a template for future work.

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)