| Reinforcement Problems | ||
| LG 10-1. | ||
| Assets
Affected? |
Liabilities
Affected? |
Owner’s
Equity Affected? |
|||||
| Event |
R
|
C
|
V
|
C | V | C |
V
|
| a. On April 30, a count
of supplies shows $400 of supplies used up. |
April 30 | Supplies | (400) | Supplies Expense | (400) | ||
| b. The
owner invested $5,000 in his business on May 7. |
May 7 | Cash | 5,000 + | Owner’s equity | 5,000 + | ||
| c. $500 was collected
from accounts receivable on October 12. |
Oct. 12 | Cash
Acct. Rec. |
500 + (500) | ||||
| d. On June 1, received $2,700 from a tenant for 3 months office rent beginning on June 1. |
June 1 | Cash | 2,700 + | Unearned Revenue | 2,700 + | ||
| e. On December 31, purchased $1,900 of supplies and will pay later. |
Dec. 31 | Supplies | 1,900 + | Accounts Payable | 1,900 + | ||
| f. Provided $750
services to customer on December 31. Customer will pay later. |
Dec. 31 | Acct. Rec. | 750 + | Service Revenue | 750 + | ||
|
g. On August 3, purchased $9,500 of equipment by paying $3,000 cash and signing a 2-month note payable. |
Aug. 3 | Cash Equipment | (3,000) 9,500 + | Notes Payable | 6,500 + | ||
| h. On January 5, received
$300 bill from the telephone company for telephone services up to December 31. |
Dec. 31 | Accounts Payable | 300 + | Telephone Expense | (300) | ||
|
i. The owner wrote a $2,500 check to himself from the business checking account on November 23. |
Nov. 23 | Cash | (2,500) | Withdrawal | (2,500) | ||
|
j. It is now June 30, the end of the first month after item “d” above. |
June 30 | Unearned Revenue | (900) | Rent Revenue | 900 + | ||
|
k. On October 3, borrowed $6,500 on a new long-term note and used the money to pay off the note in “g.” |
Oct. 3 | Notes Payable | (6,500) 6,500 + | ||||
Learning
Goal 10, continued
SOLUTIONS
| S2 |
Section
III · Transactions—Basic Recording Concepts
|
|
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