Question : 30) Show the effects of each of the following items : 1253175

 

30) Show the effects of each of the following items on assets, liabilities, and shareholders’ equity. Show the appropriate dollar amount using parentheses for negative amounts. Account titles are not required. The first transaction has been done for you.

 

a. Earned $8,000 in sales revenues in the last week of the month but haven’t billed (invoiced) or collected from the customers yet

b. Prepaid rent used up, $2,000

c. Of the $600 in office supplies on hand at the beginning of the period, only $50 remains on hand at the end of the period.

d. Interest accumulated but unpaid on a note payable amounts to $300

e. Depreciation of the long-term assets amounts to $1,200

f. Wages and salaries earned by employees but unpaid amount to $5,000

 

Item

Assets

Liabilities

Shareholders’ equity

 

 

 

Contributed

capital

Retained earnings

Ex: a

+ 8,000

 

 

+ 8,000

b.

 

 

 

 

c.

 

 

 

 

d.

 

 

 

 

e.

 

 

 

 

f.

 

 

 

 

 

31) Identify the effects of each of the following items of information on the accounting equation. Show the correct dollar amount and name the accounts involved. The first transaction has been done for you.

 

a. Supplies used up during the period, $56

b. Prepaid rent used up during the period, $120

c. Interest accrued on a note payable but unpaid, $203

d. Depreciation on long-term assets, $4,000

e. The portion of unearned revenue that has been earned, $1,000

f. A $12,000, 12-month insurance policy was purchased 7 months ago

 

 

 

Assets

Liabilities

Shareholders’ equity

 

 

 

CC

Retained earnings

a.

(56) Supplies

 

 

  (56) Supplies expense

b.

 

 

 

 

c.

 

 

 

 

d.

 

 

 

 

e.

 

 

 

 

f.

 

 

 

 

 

 

32) Identify the effects of each transaction on the accounting equation by showing the correct dollar amount and naming the accounts involved. The first transaction has been done for you.

 

TransactionAssetsLiabilitiesShareholders’ equity

 

 

 

Contributed capital

Retained earnings

a. The unadjusted balance of supplies  is $500. A count of supplies reveals $100 unused as of the end of the period.

(400)

Supplies

 

 

(400)

Supplies

expense

b. A 12-month insurance policy was    purchased 3 months ago for $16,000.

 

 

 

 

c. On the first day of the year, a    $150,000 long-term asset expected to have a 5-year useful life was     purchased. The asset has an estimated residual value of $10,000.

 

 

 

 

d. Sixty percent of the $50,000 in      unearned revenue is now earned.

 

 

 

 

 

e. Eight months ago the company    borrowed $90,000 from the bank and    agreed to pay 10% annual interest.       Interest and principal are not due until the third month of next year.