Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 1, Problem 13SE
Transaction analysis (Learning Objective 5) 5-10 min.
Presented here are nine transactions and the analysis used to account for them. Evaluate each of the suggested accounting treatments, and indicate whether it is true or false.
- 1. Received cash of $41,000 from the stockholders, who bought stock in the business
Answer. Increase asset, increase
stockholders' equity. ______ True ______ False - 2. Paid $600 cash to purchase supplies
Answer. Increase asset, increase stockholders' equity. ______ True ______ False
- 3. Earned service revenue on account, $1,200
Answer. Increase asset, increase
retained earnings . ______ True ______ False - 4. Purchased office furniture on account at a cost of $450
Answer. Increase asset, increase liability. _____ True _____ False
- 5. Received cash on account, $1,500
Answer. Increase asset, decrease asset. _____ True _____ False
- 6. Paid cash on account, $175
Answer. Increase asset, increase liability. _____ True _____ False
- 7. Sold land for $68,000 cash, which was the cost of the land.
Answer Increase asset, decrease asset. _____ True _____ False
- 8. Performed services and received cash of $825
Answer Increase asset, increase revenue. _____ True _____ False
- 9. Paid monthly office rent of $1,500
Answer Decrease asset, increase stockholders' equity. _____ True _____ False
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Chapter 1 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 1 - The text states that accounting is the "language...Ch. 1 - Would you describe accounting as primarily a...Ch. 1 - Prob. 3DQCh. 1 - What are some reasons why accounting has adopted...Ch. 1 - What are some of the uses of financial statements?Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - How is the accounting equation affected by each of...Ch. 1 - In what order should the financial statements be...Ch. 1 - Which financial statement would be most useful to...
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