Question : 147. The following selected transactions were completed by Daniels Company during : 1226629

 

147. The following selected transactions were completed by Daniels Company during May: 

1.

Capital stock was issued for $55,000.

2.

Paid creditors on account, $7,000.

3.

Billed customers for services on account, $2,565.

4.

Received cash from customers on account, $8,450.

5.

Paid cash dividends, $2,500.

6.

Received the utility bill, $160, to be paid next month.

 

 

 

Indicate the effect of each transaction on the accounting equation:

1)

By Account type – (A)assets, (L)liabilities, (SE)Stockholders’ Equity, (R)revenue, and (E)expense

2)

Name of account for the entry

3)

The amount of the transaction

4)

Whether it is an increase or decrease to the account

 

 

 

Note:  Each transaction has two entries.  

Entry

Entry

 

Acct. Type(1)

Name of Acct.(2)

Amount(3)

Increase or Decrease(4)

Acct. Type(1)

Name of Acct.(2)

Amount (3)

Increase or Decrease(4)

1.

 

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

 

3.

 

 

 

 

 

 

 

 

4.

 

 

 

 

 

 

 

 

5.

 

 

 

 

 

 

 

 

6.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

148. Use the accounting equation to answer each of the independent questions below.a.  At the beginning of the year, Norton Company assets were $75,000 and its stockholders’ equity was $38,000.  During the year, assets increased by $18,000 and liabilities increased by $4,000.  What was the stockholders’ equity at the end of the year?b.  At the beginning of the year, Turpin Industries had liabilities of $44,000 and stockholders’ equity of $66,000.  If assets increased by $10,000 and liabilities decreased by $5,000, what was the stockholders’ equity at the end of the year? 

149. Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for its customers.  How will this business transaction affect the accounting equation? 

150. Shiny Kar Company had the following transactions.  For each transaction, show the effect on the accounting equation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below. 

 

Assets

Liabilities

Stockholders’ Equity

a.  Shiny Kar paid $5,000 in cash dividends to stockholders.

 

 

 

b.  Shiny Kar Company sold 2 cars for a total of $55,000 on account.

 

 

 

c.  The cost of the cars sold in (b) above was $40,000.

 

 

 

d.  Shiny Kar received $35,000 payment for a car previously sold on account.

 

 

 

e.  Shiny Kar paid $450 for advertising.

 

 

 

f. Shiny Kar purchased $150 of cleaning supplies on account.

 

 

 

 

 

 

 

 

 

151. Ramierez Company received its first electric bill in the amount of $60 which will be paid next month.  How will this transaction affect the accounting equation?