Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 31P
Problem 1-30A Classifying events as asset source, use, or exchange
The following unrelated events are typical of those experienced by business entities:
- 1. Acquire cash by issuing common stock.
- 2. Pay other operating supplies expense.
- 3. Agree to represent a client in an IRS audit and to receive payment when the audit is complete.
- 4. Receive cash from customers for services rendered.
- 5. Pay employee salaries with cash.
- 6. Pay back a bank loan with cash.
- 7. Pay interest to a bank with cash.
- 8. Transfer cash from a checking account to a
money market account. - 9. Sell land for cash at its original cost.
- 10. Pay a cash dividend to stockholders.
- 11. Learn that a financial analyst determined the company’s price-earnings ratio to be 26.
- 12. Borrow cash from the local bank.
- 13. Pay office supplies expense.
- 14. Make plans to purchase office equipment.
- 15. Trade a used car for a computer with the same value.
Required
Identify each of the events as an asset source, use, or exchange transaction. If an event would not be recorded under generally accepted accounting principles, identify it as not applicable (NA). Also indicate for each event whether total assets would increase, decrease, or remain unchanged. Organize your answer according to the following table. The first event is shown in the table as an example.
Event No. | Type of Event | Effect on Total Assets |
1 | Asset source | Increase |
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QUESTION 4
Accompanying the bank statement has a memo for bank service charges. On the bank reconciliation, the item is
a. a deduction from the balance per company's records
b. an addition to the balance per company's records
c. an addition to the balance per bank statement
d. a deduction from the balance per bank statement
Current Attempt in Progress
Select the correct items that match the description.
1.
Segregation of duties.
Payee
2.
One to whom a cheque is payable.
Cash registers, garment sensors, and burglar alarms are examples
Custody of an asset should be kept separate from the record-keeping for that asset
Two or more employees circumventing
3.
NSF cheques
prescribed procedures.
Collusion
Prevent a transaction from being
Cash equivalents
4.
recorded more than once.
Pre-numbered documents
Bonding employees
Cheques that have been returned by
5.
the maker's bank for lack of funds.
Bank service charge
Petty cash receipt
6.
Physical control device.
Outstanding cheques
Maker
7.
One who issues a cheque.
Insurance protection against
misappropriation of assets.
8.
Document indicating the purpose of a
petty cash expenditure.
9.
10.
Bank charge for the use of its services.
Issued cheques that have not been
paid by the bank.
11.
12.
Highly liquid investments.
Column A
1. Reconciliation
Column B
A. Document owned and used by banks
B. Mode of preparationfor Bank Reconciliation
Statement
C. A report that compares accounting records and
bank statements
D. The most vulnerable asset of an entity.
E. Used to compare with Bank Statements
F. No funds available in the checking account
G. Enois committed by banks
H. Undleared checks
I. Check and balance between bank statements
and accounting records
J. To check and balance
2. Bank Reconciliation
3. NSF Checks
4. Bank Statement
5. Outstanding checks
6. Bank erors
7. Cash
8. Monthly Preparation
9. Bank Reconciliation Statement
10. Accounting records
Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
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