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CHAPTER 1 ACCOUNTING IN ACTION SUMMARY OF QUESTIshowing page 37-38 out of 53

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Accounting in Action
1 - 37
Ex. 188
(cont.)
Trans-
Accounts
Laundry
Laundry
Accounts
R. Benes
action
Cash +
Receivable
+
Supplies +
Equipment =
Payable
+
Capital
(1)
——————————————————————————————————————————
Balance
(2)
——————————————————————————————————————————
Balance
(3)
——————————————————————————————————————————
Balance
(4)
——————————————————————————————————————————
Balance
(5)
——————————————————————————————————————————
Balance
(6)
——————————————————————————————————————————
Balance
(7)
——————————————————————————————————————————
Balance
(8)
——————————————————————————————————————————
Balance
(9)
——————————————————————————————————————————
Balance
(10)
——————————————————————————————————————————
Totals
Solution 188
(20 min.)
Trans-
Accounts
Laundry
Laundry
Accounts
R. Benes
action
Cash +
Receivable
+
Supplies +
Equipment =
Payable
+
Capital
(1)
+$20,000
+$20,000
——————————————————————————————————————————
Balance
$20,000
$20,000
(2)
– 3,000
+$5,000
+$2,000
——————————————————————————————————————————
Balance
$17,000
$5,000
$2,000
$20,000
(3)
– 1,200
+$1,200
——————————————————————————————————————————
Balance
$15,800
$1,200
$5,000
$2,000
$20,000
(4)
+
300
300
Test Bank for Accounting Principles, Eighth Edition
1 - 38
Solution 188
(cont.)
Trans-
Accounts
Laundry
Laundry
Accounts
R. Benes
action
Cash +
Receivable
+
Supplies +
Equipment =
Payable
+
Capital
——————————————————————————————————————————
Balance
$15,800
$1,200
$5,000
$2,300
$19,700
(5)
+ 1,500
+ 1,500
——————————————————————————————————————————
Balance
$17,300
$1,200
$5,000
$2,300
$21,200
(6)
200
200
——————————————————————————————————————————
Balance
$17,100
$1,200
$5,000
$2,300
$21,000
(7)
+$200
+
200
——————————————————————————————————————————
Balance
$17,100
$200
$1,200
$5,000
$2,300
$21,200
(8)
300
300
——————————————————————————————————————————
Balance
$16,800
$200
$1,200
$5,000
$2,000
$21,200
(9)
900
900
——————————————————————————————————————————
Balance
$15,900
$200
$1,200
$5,000
$2,000
$20,300
(10)
+
400
400
——————————————————————————————————————————
Totals
$15,900
$200
$1,200
$5,000
$2,400
$19,900
Ex. 189
For each of the following, describe a transaction that will have the stated effect on the elements of
the accounting equation.
(a)
Increase one asset and decrease another asset.
(b)
Increase an asset and increase a liability.
(c)
Decrease an asset and decrease a liability.
(d)
Increase an asset and increase owner's equity.
(e)
Increase one asset, decrease one asset, and increase a liability.
Solution 189
(5 min.)
(a)
Receive cash from customers on account.
Purchase supplies for cash.
(b)
Purchase supplies on account.
Purchase equipment and signed a note payable.
(c)
Pay cash to reduce accounts payable.
Pay cash to reduce a note payable.
(d)
Initial contribution by an owner.
Additional contributions by an owner.
Render services on account.
(e)
Buy equipment with a cash down payment with the remainder financed by a note payable.

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