Book 1 - Chapter 10

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

Section III · Transactions—Basic Recording Concepts

Home

Home || Book Publications || Professor’s Office || Student Info & Resources || Useful Links

Worthy & James Publishing is a provider of basic accounting books covering fundamental accounting principles, business accounting, and business math. Topics in financial accounting and business accounting covered include the balance sheet, the income statement, financial ratios, and bank reconciliation.