Book 1 - Chapter 17

17-2.

	Income Statement		Balance Sheet
	Revenue	Expense	Asset	Liability	Capital
a. Cash
b. Accounts Payable
c. Interest Revenue
d. Interest Receivable
e. Fees Earned
f. Unearned Revenue
g. Notes Receivable
h. Wages Payable
i. Office Supplies
j. Office Equipment
k. Office Supplies Expense
l. Prepaid Insurance
m. Dee Markowitz, Capital


	LG	17-3.

Transaction	Effect
a. The owner invests $7,500 in his business.	+
b. The business earns service revenue and receives $500 cash.	+
c. The business buys $100 of office supplies on account.	NE
d. The business buys $2,000 of equipment for cash.	NE
e. The business pays rent expense of $1,500.	–
f. The business earns service revenue for $1,000 on account (accounts receivable).	+
g. The business pays the $100 account payable for the purchases of supplies.	NE
h. The owner withdraws $200 cash.	–
i. The business collects $1,000 cash from the account receivable.	NE

Learning Goal 17, continued

SOLUTIONS

Section IV · The Essential Financial Statements

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.