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Section 1

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Excerises on Chapter 1: Accounting in action

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Section 1

  1. 1. Principles Of Accounting (1) Chapter 1 Accounting In Action Mohamed Mahmoud [email_address] Tel: (+202) 33318449
  2. 2. Judi Dench opened a veterinary business in Nashville, Tennessee, on August 1. on August 31, the balance sheet showed cash $ 9,000. accounts Receivable $1,700, supplies $600, office equipments $ 6,000 Accounts payable $ 3,600 and J. Dench Capital $ 13,700. During Sept-ember the following transactions occurred: Paid $ 2,900 cash on accounts payable. Collected $ 1,300 of accounts receivable. Purchased additional office equipment for $ 2,100 paying $ 800 in - cash and the balance on account. Earned revenue of $ 6,300 of which $ 2,500 is paid in cash & the balance is due in October. Withdraw $600 cash for personal use. Paid salaries $700, rent for September $ 900 and advertising expense $ 300. Incurred utility expenses for month on account $ 170. Received $ 7,000 from capital Bank- money borrowed on a note payable. Instructions : Prepare a tabular analysis of September transactions beginning with August 31 balance the column headings should be as follows : cash + accounts receivable + supplies + office equipment = Notes payable + Accounts payable + j. Dench, Capital. Exercise (1)
  3. 3. on August 31, the balance sheet showed cash $ 9,000. accounts Receivable $1,700, supplies $600, office equipments $ 6,000 Accounts payable $ 3,600 and J. Dench Capital $ 13,700. Judi, Capital - 600 Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 Answer
  4. 4. on August 31, the balance sheet showed cash $ 9,000. accounts Receivable $1,700, supplies $600, office equipments $ 6,000 Accounts payable $ 3,600 and J. Dench Capital $ 13,700. Judi, Capital - 600 1. Paid $ 2,900 cash on accounts payable. 1 . - 2,900 - 2,900 Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 Answer
  5. 5. Judi, Capital - 600 2. Collected $ 1,300 of accounts receivable. - 2,900 2 . Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 Answer
  6. 6. Judi, Capital - 600 - 2,900 2. 3. Purchased additional office equipment for $ 2,100 paying $ 800 in - cash and the balance on account. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3. - 800 + 2,100 + 1300 Answer
  7. 7. Judi, Capital - 600 - 2,900 2. 4. Earned revenue of $ 6,300 of which $ 2,500 is paid in cash & the balance is due in October. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3 . - 800 + 2,100 + 1300 4. + 2,500 + 3800 + 6300 Answer
  8. 8. Judi, Capital - 600 - 2,900 2. 5. Withdraw $600 cash for personal use. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3 . - 800 + 2,100 + 1300 4 . + 2,500 + 3800 + 6300 5. - 600 - 600 Answer
  9. 9. Judi, Capital - 600 - 2,900 2. 6. Paid salaries $700, rent for September $ 900 and advertising expense $ 300. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3 . - 800 + 2,100 + 1300 4 . + 2,500 + 3800 + 6300 5 . - 600 - 600 6. - 1,900 - 1,900 Answer
  10. 10. Judi, Capital - 600 - 2,900 2. 7. Incurred utility expenses for month on account $ 170. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3 . - 800 + 2,100 + 1300 4 . + 2,500 + 3800 + 6300 5 . - 600 - 600 6 . - 1,900 - 1,900 7. + 170 - 170 Answer
  11. 11. Judi, Capital - 600 - 2,900 2. 8. Received $ 7,000 from capital Bank- money borrowed on a note payable. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3 . - 800 + 2,100 + 1300 4 . + 2,500 + 3800 + 6300 5 . - 600 - 600 6 . - 1,900 - 1,900 7. + 170 + 170 8. + 7000 + 7000 Answer
  12. 12. Judi, Capital - 600 - 2,900 2. 8. Received $ 7,000 from capital Bank- money borrowed on a note payable. Cash Accounts Receivable Equip. + + Assets + Supplies Accounts Payable Liabilities Equity Notes Payable + 3.600 13.700 9000 1700 6000 1. - 2,900 + 1300 - 1300 3 . - 800 + 2,100 + 1300 4 . + 2,500 + 3800 + 6300 5 . - 600 - 600 6 . - 1,900 - 1,900 7. + 170 + 170 8. + 7000 + 7000 $13,600 $4,200 $600 $8,100 $2,170 $7000 $17,330 Answer
  13. 13. Exercise (2) Barone’s Repair Shop was started on May 1 by Nancy. Prepare a tabular analysis of the following transactions for the month of May: Invested $10,000 cash to start the repair shop. Purchased equipment for $5,000 cash. Paid $400 cash for May office rent. Received $5,100 from customers for repair service. Withdrew $1,000 cash for personal use. Paid part-time employee salaries of $2,000. Incurred $250 of advertising costs, on account. Provided $750 of repair services on account. Collected $120 cash for services previously billed. Instructions : Prepare a tabular analysis of May transactions , the column headings should be as follows : cash + accounts receivable + equipment = Notes payable + Barone, Capital .
  14. 14. Transactions (Problem) P1-1A: Barone’s Repair Shop was started on May 1 by Nancy. Prepare a tabular analysis of the following transactions for the month of May. +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable Barone, Capital LO 7 Analyze the effects of business transactions on the accounting equation. + + = + 1. Invested $10,000 cash to start the repair shop. Investment Assets Liabilities Equity
  15. 15. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable Barone, Capital LO 7 Analyze the effects of business transactions on the accounting equation. 2. Purchased equipment for $5,000 cash. -5,000 2. +5,000 + + = + Investment Assets Liabilities Equity
  16. 16. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 3. Paid $400 cash for May office rent. -5,000 2. +5,000 + + = + -400 3. -400 Expense Barone, Capital Investment Assets Liabilities Equity
  17. 17. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 4. Received $5,100 from customers for repair service. -5,000 2. +5,000 + + = + -400 3. -400 Expense +5,100 4. +5,100 Revenue Barone, Capital Investment Assets Liabilities Equity
  18. 18. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 5. Withdrew $1,000 cash for personal use. -5,000 2. +5,000 + + = + -400 3. -400 Expense +5,100 4. +5,100 Revenue -1,000 5. -1,000 Drawings Barone, Capital Investment Assets Liabilities Equity
  19. 19. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 6. Paid part-time employee salaries of $2,000. -5,000 2. +5,000 + + = + -400 3. -400 Expense +5,100 4. +5,100 Revenue -1,000 5. -1,000 Drawings -2,000 6. -2,000 Expense Barone, Capital Investment Assets Liabilities Equity
  20. 20. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 7. Incurred $250 of advertising costs, on account. -5,000 2. +5,000 + + = + -400 3. -400 Expense +5,100 4. +5,100 Revenue -1,000 5. -1,000 Drawings -2,000 6. -2,000 Expense +250 7. -250 Expense Barone, Capital Investment Assets Liabilities Equity
  21. 21. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 8. Provided $750 of repair services on account. -5,000 2. +5,000 + + = + -400 3. -400 Expense +5,100 4. +5,100 Revenue -1,000 5. -1,000 Drawings -2,000 6. -2,000 Expense +250 7. -250 Expense +750 8. +750 Revenue Barone, Capital Investment Assets Liabilities Equity
  22. 22. Transactions (Problem) +10,000 1. +10,000 Cash Accounts Receivable Equipment Accounts Payable LO 7 Analyze the effects of business transactions on the accounting equation. 9. Collected $120 cash for services previously billed. -5,000 2. +5,000 + + = + -400 3. -400 Expense +5,100 4. +5,100 Revenue -1,000 5. -1,000 Drawings -2,000 6. -2,000 Expense +250 7. -250 Expense +750 8. +750 Revenue +120 9. -120 Barone, Capital Investment Assets Liabilities Equity 6,820 + 630 + 5,000 = 250 + 12,200
  23. 23. Any Questions ?????!

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