Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 2SEQ
The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash of $8,000 and a decrease in
A. Total assets will exceed total liabilities and
B. Total assets will be less than total liabilities and stockholders’ equity by $8,000.
C. Total assets will exceed total liabilities and stockholders’ equity by $16,000.
D. The error will not affect the accounting equation.
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Required:
Using the following categories, Indicate the effects of the following transactions. Indicate the accounts affected and the amounts.
(Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)
a. During the period, customer balances are written off in the amount of $11,800.
b. At the end of the period, bad debt expense is estimated to be $9,800.
3.
Assets
Liabilities
Stockholders' Equity
On reviewing the financial statements, the company's accountant discovers that a payment of
£21,000 made to a supplier has been incorrectly recorded in the cash book and in other internal
accounting records as £31,000. What will be the effect on the income statement (profit and loss
account) and statement of financial position (balance sheet) when this error is rectified?
A) Profit before tax will remain unchanged, asset of cash will decrease by 10,000 and trade
payables (creditors) will decrease by 10,000
B) Profit before tax will decrease by 21,000 and trade payables (creditors) will increase by
21,000
C) Profit before tax will increase by 31,000 and trade payables (creditors) will increase by
31,000
D) Profit before tax will remain unchanged, asset of cash will increase by 10,000 and trade
payables (creditors) will increase by 10,000
Which of the following items would not appear in the section of the statement of financial
position (balance sheet) headed 'Capital and reserves"?
A)…
The receipt of $8,000 cash for fees earned was recorded by Mother Earth Consulting as an increase in cash of $8,000 and a decrease in retained earnings (revenue) of $8,000. What is the effect of this error on the accounting equation? A. Total assets will exceed total liabilities and stockholders’ equity by $8,000 B. Total assets will be less than total liabilities and stockholders’ equity by $8,000 C. Total assets will exceed total liabilities and stockholders’ equity by $16,000 D. The error will not affect the accounting equation.
Chapter 2 Solutions
Survey of Accounting (Accounting I)
Ch. 2 - The purchase of land for $50,000 cash was...Ch. 2 - The receipt of $8,000 cash for fees earned was...Ch. 2 - If total assets increased $20,000 during a period...Ch. 2 - Prob. 4SEQCh. 2 - Which of the following transactions changes only...Ch. 2 - Prob. 1CDQCh. 2 - Prob. 2CDQCh. 2 - Indicate whether the following error would cause...Ch. 2 - Prob. 4CDQCh. 2 - Prob. 5CDQ
Ch. 2 - Capstone Consulting Services acquired land 5 years...Ch. 2 - Prob. 7CDQCh. 2 - Assume that Esquire Consulting erroneously...Ch. 2 - Prob. 9CDQCh. 2 - Assume that as of January 1, 20Y8, Sylvester Con-...Ch. 2 - Using the January 1 and December 31, 20Y8, data...Ch. 2 - Accounting equation Determine the missing amount...Ch. 2 - Accounting equation The Walt Disney Company (DIS)...Ch. 2 - Accounting equation Campbell Soup Co. (CPB) had...Ch. 2 - Accounting equation The following are recent year...Ch. 2 - Prob. 2.5ECh. 2 - Effects of transactions on stockholders’ equity...Ch. 2 - Effects of transactions on Accounting equation...Ch. 2 - Effects of transactions on Accounting equation A...Ch. 2 - Effects of transactions on stockholders’ equity...Ch. 2 - Effects of transactions on Accounting equation On...Ch. 2 - Nature of transactions Cheryl Alder operates her...Ch. 2 - Net income and dividends The income statement of a...Ch. 2 - Net income and stockholders’ equity for four...Ch. 2 - Prob. 2.14ECh. 2 - Prob. 2.15ECh. 2 - Balance sheet, net income, and cash flows...Ch. 2 - Income statement After its first month of...Ch. 2 - Statement of stockholders’ equity Using the...Ch. 2 - Prob. 2.19ECh. 2 - Statement of cash flows Using the financial data...Ch. 2 - Effects of transactions on Accounting equation...Ch. 2 - Prob. 2.22ECh. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - P2-3 Financial statements The following amounts...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Missing amounts from Financial statements The...Ch. 2 - Financial statements Alpine Realty. Inc.,...Ch. 2 - Prob. 2.1MBACh. 2 - Prob. 2.2MBACh. 2 - MBA 2-3 Common-sized income statements Delta Air...Ch. 2 - MBA 2-4 Common-sized income statements Southwest...Ch. 2 - Prob. 2.5MBACh. 2 - MBA 2-6 Common-sized income statements Kellogg...Ch. 2 - MBA 2-7 Common-sized income statements General...Ch. 2 - Common-sized income statements Using your answers...Ch. 2 - Prob. 2.9.1MBACh. 2 - Prob. 2.9.2MBACh. 2 - Business emphasis Assume that you are considering...Ch. 2 - Business emphasis Assume that you are considering...Ch. 2 - Business emphasis Assume that you are considering...Ch. 2 - Prob. 2.2CCh. 2 - Prob. 2.3CCh. 2 - Prob. 2.4.1CCh. 2 - Prob. 2.4.2CCh. 2 - Financial information Yahoo.com’s (YHOO) finance...Ch. 2 - Prob. 2.4.4CCh. 2 - Prob. 2.4.6CCh. 2 - Prob. 2.4.7CCh. 2 - Prob. 2.4.8CCh. 2 - Prob. 2.4.9CCh. 2 - Financial information Yahoo.com’s (YHOO) finance...
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