Home

Skip to Primary Content Skip to Secondary Content

Home || Basic Accounting - Vol. 1 Solutions

Contact Us | Terms of Use | Privacy Policy

LG 24-1, continued
 
d. Santa Monica Company purchases $10,000 of equipment by paying $1,000 cash and signing
a $9,000 note payable.
     
e. Fairfield Partnership prepays three months’ office rent for $12,000.
     
f. Sonoma Company receives a three-month advance payment from a customer in the amount
of $5,000.
     
g. Salinas Enterprises pays a $400 account payable.
     
h. Fairfield Company, (f) above, uses up one month of the prepaid office rent.
     
  Note: An increase in an expense decreases the owner’s equity, and the equation is still in balance.
Learning Goal 24, continued
SOLUTIONS
S2
Section V · Using a Basic Accounting System
  
 
Home

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

Contact Us || Site Map || Terms of Use || Privacy Notice

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.

©2006-2007 Worthy & James Publishing. All rights reserved. Web Development and Design by Dayspring Technologies, Inc.