Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 2, Problem 4QC
Thorpe Corporation purchases a new delivery truck and signs a note payable at the truck dealership for the total cost. The impact of this transaction on Thorpe Corporation
- a. increases assets and decreases stockholders’ equity.
- b. decreases assets and increases liabilities.
- c. increases assets and increases liabilities.
- d. increases assets and increases stockholders’ equity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Match the appropriate terms with the definitions.
Definition
1. The economic benefit (increase in assets) gained by providing goods or services to customers.
2. Investors who purchase common stock.
3.
The economic sacrifice (decrease in assets) incurred in the process of providing goods or
services to customers.
4. Created when a company borrows money from a bank.
5. Assets minus liabilities and retained earnings.
6. Occurs when expenses exceed revenues during the year.
7. Individuals or institutions that have loaned goods or services to a business.
8. Complete set of accounts used in accounting systems.
9. Occurs when revenue exceeds expenses during the year.
10 Assets minus liabilities.
11. The section of the statement of cash flows that reflects cash paid for expenses.
12 The section of the statement of cash flows that reflects cash collected from the issue of stock.
13 The section of the statement of cash flows that reflects cash paid to purchase land.
14
The item shown on the…
. Revenues area. decreases in liabilities resulting from paying off loans.b. increases in retained earnings resulting from selling products or performing services.c. increases in paid-in capital resulting from the owners investing in the business.d. all of the above.
The owner’s equity will reduce when ________ i. A business obtains net profit ii. A business incur net loss iii. The owner contributes additional capital iv. The owner pays the business debt using his own pocket money v. The owner withdraws goods for his personal consumption
Chapter 2 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 2 - All of the following events at a sandwich shop are...Ch. 2 - Identify the asset from the following list of...Ch. 2 - Amounts owed to a company by its customers would...Ch. 2 - Thorpe Corporation purchases a new delivery truck...Ch. 2 - Adam Corporation issues stock to Cara Riley in...Ch. 2 - Blake Company completed a consulting job and...Ch. 2 - Prob. 7QCCh. 2 - Accounts Payable had a normal beginning balance of...Ch. 2 - Which of the following debit and credit rules is...Ch. 2 - A companys beginning Cash balance was 8,000. At...
Ch. 2 - Prob. 11QCCh. 2 - Prob. 12QCCh. 2 - Prob. 13QCCh. 2 - In a double-entry accounting system, a. a debit...Ch. 2 - Prob. 15QCCh. 2 - Prob. 16QCCh. 2 - Prob. 2.1ECCh. 2 - LO 1 (Learning Objective 1: Identify transactions)...Ch. 2 - (Learning Objective 1: Differentiate between...Ch. 2 - (Learning Objective 1: Differentiate between...Ch. 2 - (Learning Objective 2: Show the impact of...Ch. 2 - (Learning Objective 2: Show the impact of...Ch. 2 - LO 3 (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 4: Journalize transactions)...Ch. 2 - (Learning Objective 4: Journalize and post...Ch. 2 - (Learning Objective 4: Journalize and post...Ch. 2 - (Learning Objective 4: Journalize transactions)...Ch. 2 - Prob. 2.13SCh. 2 - (Learning Objective 5: Use a trial balance)...Ch. 2 - Prob. 2.15SCh. 2 - (Learning Objectives 1, 2, 3, 4, 5: Define...Ch. 2 - Group A LO 1, 2, 4 (Learning Objectives 1, 2, 4:...Ch. 2 - LO 3 (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 2: Show the impact of business...Ch. 2 - (Learning Objective 4: Journalize transactions in...Ch. 2 - (Learning Objectives 4, 5: Post journal entries...Ch. 2 - Prob. 2.23AECh. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - (Learning Objective 5: Solve for cash and...Ch. 2 - (Learning Objectives 1, 2, 4: Identify...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 2: Show the impact of business...Ch. 2 - LO 4 (Learning Objective 4: Journalize...Ch. 2 - Prob. 2.32BECh. 2 - (Learning Objective 4: Journalize entries and...Ch. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - Prob. 2.35BECh. 2 - LO 5 (Learning Objective 5: Solve for cash and...Ch. 2 - (Learning Objectives 4, 5; Journalize and poet...Ch. 2 - Which of the following is an asset? a. Common...Ch. 2 - Prob. 2.39QCh. 2 - The journal entry to record the acquisition of...Ch. 2 - The journal entry to record the purchase of...Ch. 2 - If the credit to record the purchase of supplies...Ch. 2 - The journal entry to record a payment on account...Ch. 2 - If the credit to record the payment of an account...Ch. 2 - Which statement is false? a. A trial balance lists...Ch. 2 - If a corporation purchases a delivery van for...Ch. 2 - Prob. 2.47QCh. 2 - Prob. 2.48QCh. 2 - Prob. 2.49QCh. 2 - Prob. 2.50QCh. 2 - Receiving cash from a customer on account will a....Ch. 2 - Prob. 2.52QCh. 2 - Purchasing a building for 115,000 by paying cash...Ch. 2 - Prob. 2.54QCh. 2 - Prob. 2.55QCh. 2 - Prob. 2.56QCh. 2 - Prob. 2.57QCh. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - LO 2,3 (Learning Objectives 2, 3: Analyze the...Ch. 2 - (Learning Objective 4: Journalize transactions and...Ch. 2 - LO 4,5 (Learning Objectives 4, 5: Journalize and...Ch. 2 - Prob. 2.62APCh. 2 - Prob. 2.63BPCh. 2 - Prob. 2.64BPCh. 2 - Prob. 2.65BPCh. 2 - (Learning Objectives 4, 5: Journalize and post...Ch. 2 - (Learning Objectives 3, 5: Analyze the impact of...Ch. 2 - (Learning Objective 5: Analyzing accounts) The...Ch. 2 - Prob. 2.69CEPCh. 2 - Prob. 2.70CEPCh. 2 - (Learning Objectives 2, 3, 4: Analyze the impact...Ch. 2 - Prob. 2.72SCCh. 2 - Prob. 2.73DCCh. 2 - Prob. 2.74DCCh. 2 - Prob. 2.75EICCh. 2 - Prob. 2.76EICCh. 2 - Prob. 1FFCh. 2 - Prob. 1FA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Describe a transaction that would: a. Increase both an asset and a liability. b. Increase one asset and decrease another asset. c. Decrease both a liability and an asset. d. Increase both an asset and retained earnings. e. Decrease both an asset and retained earnings. Identify whether the following group of people belongs to internal or external users of annual reports for a company. Eexplain their need for financial information. a. Johari, investment banker of CIMB Investment Bank.b. Daisy Ong, purchasing manager of the company. c. Happy Berhad, supplier of the company. d. Great Sdn Bhd, regular customer of the company.e. Amy, officer from Inland Revenue Board.Eng Hardwares has the following balance as at 30 November 2020: Accounts RM’000 Wages(Debit) 110,000 Insurance (Debit) 2,000 Rental (Credit) 50,000 Additional information: i. Eng Hardwares pays wages to its workers at the end of every month. However, some internal problems arise and it did not pay wages amounting to RM10,000 to…arrow_forwardBlecker Corp. made cash sales to customers. What effect does this transaction have on theaccounting equation?a. Liabilities increase and stockholders’ equity increases.b. There is no effect on the accounting equation as one asset account increases whileanother asset account decreases.c. Assets increase and liabilities increase.d. Assets increase and stockholders’ equity increases.arrow_forwardWhich of the following is correct? Select one: a. Unearned revenues are considered increases to stockholders' equity. b. Working capital is measured as current liabilities minus current assets. C. Unearned revenues will eventually become revenue earned. d. Working capital increases when a company pays the principal on a long-term note.arrow_forward
- A company sells magazines and collects subscription fees prior to the publication and distribution of the magazine. Which of the following correctly describes the impact on the financial statements when cash is received in advance from customers? Group of answer choices A)Current assets increase and gross profit increases. B)Current liabilities increase and gross profit is not affected. C)Current assets increase and stockholders' equity increases. D)Current liabilities aren't affected and stockholders' equity isn't affected.arrow_forwardA bank loan approved for the business that has been paid into the bank account will have the following impact on the accounting equation. Group of answer choices Increase equity and increase asset Decrease an asset and decrease a liability Decrease an asset and decrease stockholders’ equity Increase an asset and increase a liabilityarrow_forwardJasper Corp. collects payment on an accounts receivable balance. This transaction Select one: O a. increases an asset; decreases an asset. O b. decreases an asset; increases a liability. Oc. decreases a liability; increases stockholders' equity. O d. increases an asset; decreases a liability.arrow_forward
- A business provides services to a customer on credit.Which of the following is correct: A.Assets increase and onwer's equity increases at the time the cash is collected B.Assets increase and liabilities increase at the time of the sale C.Assets increase and onwer's equity increases at the time of the sale D.Assets increase and liabilities decrease at the time the cash is collectedarrow_forwardWhat is Market Value? A. Any cost that has not yet been charged to the expense B. The amount of money a business must currently spend to replace an essential asset C. Maintaining an account tied to a certain asset D. The value of a company according to the stock marketarrow_forwardA business provider services to a customer on credit.Which of the following is correct: A.Assets increase and liabilities decrease at the time the cash is collected B.Assets increase and liabilities increase at the time of the sale C.Assets increase and the owner's equity increases at the time the cash is collected D.Assets increase and the owner's equity increases at the time of the salearrow_forward
- Paying an amount on account reduces Oa. a. stockholders' equity. O b. the amount owed on a liability. O c. net income. O d. an expense. 6 Four companies and their ratio of liabilities to stockholders' equity are as follows: 0.88 Fred Company 0.44 Yabba Company 1.22 Dabba Company 0.66 Doo Company To which company would a supplier be most eager to extend credit? O a. Dabba Company O b. Doo Company O c. Fred Company O d. Yabba Companyarrow_forwardFor each of the items below, indicate whether the transaction increased equity, decreased equity, or has no effect on equity. v Paid a vendor invoice. A. No effect Sold stock to the public. В. v Paid rent. Increase C. Decrease v Received a check from a customer to pay their account. Sold merchandise on account. v Sold merchandise for cash. Bought inventory on account. Recorded a decline in inventory value. Sold equipment for more than its book value. v Recorded compensated absences.arrow_forwardA. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License