Question

Splish Brothers Inc. has the following transactions during August of the current year. Indicate (a) the...

Splish Brothers Inc. has the following transactions during August of the current year.

Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis.

Aug. 1 Opens an office as a financial advisor, investing $5,900 in cash in exchange for common stock.
4 Pays insurance in advance for 6 months, $1,880 cash.
16 Receives $500 from clients for services performed.
27 Pays secretary $1,710 salary.


(a)   Effect on Accounting Equation

(b)   Debit-Credit Analysis
Aug. 1 The asset is

IncreasedDecreased

;		 Debits

Increase ExpensesDecrease AssetsIncrease AssetsIncrease RevenuesDecrease Stockholders' EquityIncrease Stockholders' EquityDecrease RevenuesDecrease Expenses
the stockholders’ equity account is

IncreasedDecreased

.		 Debit $
Credits

Increase RevenuesIncrease ExpensesIncrease AssetsDecrease AssetsDecrease RevenuesDecrease Stockholders' EquityDecrease ExpensesIncrease Stockholders' Equity
Credit $
Aug. 4 The asset is

IncreasedDecreased

;		 Debits

Increase Stockholders' EquityDecrease AssetsDecrease RevenuesIncrease ExpensesIncrease RevenuesDecrease ExpensesIncrease AssetsDecrease Stockholders' Equity
the asset is

IncreasedDecreased

.		 Debit $
Credits

Increase RevenuesIncrease Stockholders' EquityIncrease ExpensesDecrease RevenuesDecrease Stockholders' EquityDecrease ExpensesIncrease AssetsDecrease Assets
Credit $
Aug. 16 The asset is

IncreasedDecreased

;		 Debits

Increase Stockholders' EquityDecrease ExpensesIncrease ExpensesDecrease Stockholders' EquityDecrease AssetsIncrease RevenuesDecrease RevenuesIncrease Assets
the revenue is

IncreasedDecreased

.		 Debit $
Credits

Increase ExpensesDecrease Stockholders' EquityDecrease RevenuesDecrease ExpensesIncrease AssetsIncrease RevenuesIncrease Stockholders' EquityDecrease Assets
Credit $
Aug. 27 The expense is

IncreasedDecreased

;		 Debits

Decrease AssetsIncrease RevenuesIncrease ExpensesDecrease ExpensesIncrease Stockholders' EquityIncrease AssetsDecrease Stockholders' EquityDecrease Revenues
the asset is

IncreasedDecreased

.		 Debit $
Credits

Decrease AssetsIncrease Stockholders' EquityIncrease RevenuesDecrease ExpensesIncrease ExpensesDecrease Stockholders' EquityDecrease RevenuesIncrease Assets
Credit $
Click if you would like to Show Work for this question:

Open Show Work
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Date Effect on the accounting equation Debit-Credit analysis
Aug-01 Asset(Cash)- Increased Debit- Increase
Capital Introduction Equity(Shares)- Increased Credit- Increase
Aug-04 Asset(Insurance)- Increased Debit- Increase
Prepaid Insurance Asset (Cash)- Decrease Credit- Decrease
Aug-16 Asset( Cash)- Increased Debit- Increase
Service Performed Revenue(Services)- Increased Credit- Increase
Aug-27 Expense (Salary)- Increase Debit- Increase
Salary paid Asset (Cash)- Decrease Credit- Decrease
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed...
Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,580 $8,770 Property, plant, and equipment (net) 1,810 1,800 Other assets 1,540 1,670 Total assets $12,930 $12,240 Liabilities and Stockholders' Equity Current Liabilities $3,150 $3,320 Long-term liabilities 1,320 1,370 Stockholders’ equity 8,460 7,550 Total liabilities and stockholders' equity $12,930 $12,240 (a) Prepare a horizontal analysis of the balance sheet data for Splish...
Selected transactions from the journal of Splish Brothers Inc. during its first month of operations are...
Selected transactions from the journal of Splish Brothers Inc. during its first month of operations are presented here. Date Account Titles Debit Credit Aug. 1 Cash 7,700 Common Stock 7,700 10 Cash 1,250 Service Revenue 1,250 12 Equipment 6,400 Cash 1,550 Notes Payable 4,850 25 Accounts Receivable 2,890 Service Revenue 2,890 31 Cash 500 Accounts Receivable 500 Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)
Splish Brothers Inc. began the year with $151200 in its Common Stock account and a debit...
Splish Brothers Inc. began the year with $151200 in its Common Stock account and a debit balance in Retained Earnings of $64800. During the year, the company earned net income of $32400 and declared and paid $10800 of dividends. In addition, the company sold additional common stock amounting to $39600. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts? $298800 $147600 $198000 $277200
1. During 2022, Splish Brothers Corp. entered into the following transactions. 1. Borrowed $56,400 by issuing...
1. During 2022, Splish Brothers Corp. entered into the following transactions. 1. Borrowed $56,400 by issuing a note. 2. Paid $8,460 cash dividend to stockholders. 3. Received $12,220 cash from a previously billed customer for services performed. 4. Purchased supplies on account for $2,914. Using the following tabular analysis, show the effect of each transaction on the accounting equation. For retained earnings, use separate columns for revenues, expenses, and dividends if necessary. (If a transaction results in a decrease in...
This information relates to Pronghorn Real Estate Agency. Oct. 1 Stockholders invest $31,100 in exchange for...
This information relates to Pronghorn Real Estate Agency. Oct. 1 Stockholders invest $31,100 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $31,320. 3 Buys office furniture for $3,970, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,380 (not paid by Roads at this time). 10 Receives cash of $240 as commission for acting as rental agent renting an apartment. 27 Pays $770...
Transaction Analysis: Match each of the following transactions of L. Boyd & Company with the appropriate...
Transaction Analysis: Match each of the following transactions of L. Boyd & Company with the appropriate letters, indicating the debits and credits to be made. The key for the letters follows the list of transactions. 1. Stockholders contributed cash to the business. Example Answer: A and F 2. Purchased equipment on account. 3. Received and immediately paid advertising bill. 4. Purchased supplies for cash. 5. Borrowed money from a bank, giving a note payable. 6. Billed customers for services rendered....
The following selected transactions were completed during August of the current year: Transactions Aug. 1 Billed...
The following selected transactions were completed during August of the current year: Transactions Aug. 1 Billed customers for fees earned, $74,310. 4 Purchased supplies on account, $2,000. 8 Received cash from customers on account, $62,770. 11 Paid creditors on account, $900. Required: A. Journalize these transactions in a two-column journal. Refer to the T-Accounts for exact wording of account titles. B. Post the entries prepared in (A) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fees Earned....
During 2022, its first year of operations as a delivery service, Novak Corp. entered into the...
During 2022, its first year of operations as a delivery service, Novak Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $122,000 in cash. 2. Borrowed $48,000 by issuing bonds. 3. Purchased delivery trucks for $52,000 cash. 4. Received $16,000 from customers for services performed. 5. Purchased supplies for $4,700 on account. 6. Paid rent of $5,800. 7. Performed services on account for $11,800. 8. Paid salaries of $26,700. 9. Paid a...
Analyze the transactions described below and indicate their effect on the basic accounting equation. Use a...
Analyze the transactions described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (—) to indicate a decrease. Assets = Liabilities + Owner's Equity 1. Received cash for services performed. ________ ________ ________ 2. Purchased office equipment on credit. ________ ________ ________ 3. Paid employees' salaries. ________ ________ ________ 4. Received cash from customer in payment on account. ________ ________ ________ 5. Paid telephone bill for...
Exercise 3-3 During 2017, its first year of operations as a delivery service, Indigo Corporation entered...
Exercise 3-3 During 2017, its first year of operations as a delivery service, Indigo Corporation entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $150,000 in cash. 2. Borrowed $40,000 by issuing bonds. 3. Purchased delivery trucks for $55,000 cash. 4. Received $17,000 from customers for services performed. 5. Purchased supplies for $6,700 on account. 6. Paid rent of $4,200. 7. Performed services on account for $11,700. 8. Paid salaries of $26,800. 9....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT