Question :
193. Several transactions listed below, with the accounting equation stated to : 1226932
193. Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation. Write your answers in the space provided under the accounting equation. You need an identification code for each element of the accounting equation. An example is given before the first transaction.
I-Increase
D-Decrease
NE-No Effect
Stockholders’
Assets
=
Liabilities
+
Equity
Example
John Smith invests in a new business by purchasing $3,500 of capital stock.
I
NE
I
A)
Cash sales are made.
B)
Equipment is purchased on credit.
C)
Payment is made for the equipment purchased on credit in (B).
D)
The company sold excess supplies to another company on credit.
E)
Cash is collected from customers for accounts receivable balances.
194. Journalize the five transactions for Mirmax Tool Rentals described below.
Aug. 1
Mirmax purchases two new saws on credit at $375 each. The saws are added to Mirmax’s rental inventory. Payment is due in 30 days.
8
Mirmax accepts advance deposits for tool rentals of $75 that will be applied to the cash rental when the tools are returned.
15
Mirmax receives a bill from Macon Utility Company for $150. Payment is due in 30 days.
20
Customers are charged $750 by Mirmax for tool rentals. Payment is due from the customers in 30 days.
31
Mirmax receives $500 in payments from the customers that were billed for rentals on August 20.
195. Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.
Mar. 1
Bills are sent to clients for services provided in February in the amount of $800.
9
Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220.
15
Payment is made to Corner Office, Inc. for the furniture and office supplies delivered on March 9.
23
A bill for $430 for electricity for the month of March is received and will be paid on its due date in April.
31
Salaries of $850 are paid to employees.
196. On January 1, 2011, Cary Parsons established Cary’s Catering Service. Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Capital Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
17.
Insurance Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Cary transferred cash from a personal bank account to an account for the business in exchange for stock.
b. Paid rent for the period of January 3 to the end of the month.
c. Purchased a truck for $30,000 with a cash down payment of $5,000 and the remainder on a note.
d. Purchased equipment on account.
197. On January 1, 2011, Cary Parsons established Cary’s Catering Service. Listed below are accounts to use for transactions (a) through (e), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Capital Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
17.
Insurance Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Purchased supplies for cash.
b. Paid the annual premiums on property and casualty insurance.
c. Received cash for a job previously recorded on account.
d. Paid a creditor a portion of the amount owed for equipment previously purchased on account.
e. Received cash for a completed job.
