Question

a) Record the transaction using the accounting equation. Be specific about account names & $ amounts....

a) Record the transaction using the accounting equation. Be specific about account names & $ amounts.

b) Indicate the effect of each transaction on the Statement of Cash Flow (SCF). Specify which section(s) of the SCF the transaction affects and in what direction. If there is no effect on the SCF, write “no effect”.

  1. Recognized $9,000 of depreciation expense on the machinery.

Accounting Equation
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
1)
ACCOUNTING EQUATION
PARTICULARS ASSESTS=           LIABILITIES+ OWNER'S EQUITY
MACHINERY OWNER'S CAPITAL+ REVENUE- EXPENSES
i) Depreciation ($9,000) 9000
Explanation-Deprecation is expense threrefore it is deducted from machinery and also added under expenses which reduce profit of the organisation.
2)Depreciation does not directly impact the cash flow of an arganisation but it is allowable expense under income tax. Therefore it's reduce outflow of cash related to income tax
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
Record the following transactions using the below accounting equation. The first one has been completed for...
Record the following transactions using the below accounting equation. The first one has been completed for you as an example. Make sure to indicate the specific account name and use a + or – sign to indicate if the overall category is being increased or decreased. Items that effect net income should only be shown in the net income column and not in stockholders’ equity. After recording all transactions, calculate total assets, total liabilities, stockholders’ equity, revenues and expense. Prove...
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in...
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). On May 15,...
Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transaction were completed...
Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transaction were completed by Interstate Delivery Service during May: 1. Received cash from owner as additional investment, $18,000. 2. Paid advertising expense, $ 4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customer on account, $8,200. Indicate the effect of each transaction on the accounting equation elements ( Assets, Liabilities, Owner’s Equity, Drawing, Revenue, and Expense)....
Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the...
Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following four accounting events in Year 1: Recognized $88,000 of revenue on account. Collected $82,000 cash from accounts receivable. Wrote off uncollectible accounts of $1,500. Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be 2 percent of sales on account. Required a. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like...
Problem 3 – Recording Transaction in the Expanded Accounting Equation Cora Crouse began Cora’s Cleaning Service...
Problem 3 – Recording Transaction in the Expanded Accounting Equation Cora Crouse began Cora’s Cleaning Service on April 1, 20XX as a proprietorship. The following transactions occurred during the first month of operations. April 1 Cora invested $10,000 of equipment and $15,000 cash in the business. April 1 Paid the office rent for April in cash in the amount of $1,000. April 4 Purchased $5,000 of equipment, paying $2,500, with the balance due in 20 days. April 10 Billed a...
Transactions Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected transactions were...
Transactions Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected transactions were completed by Arrowhead Delivery Service during August: Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner's Equity, Drawing, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $25,000; Owner's Equity (Gates Deeter, Capital) increases by $25,000. Element Item Direction 1....
The accounting equation has been expanded and should appear as follows: Assets = Liabilities + Capital...
The accounting equation has been expanded and should appear as follows: Assets = Liabilities + Capital – Drawing + Revenue – Expenses Accounts are classified and listed under each heading. Transactions are recorded by listing amounts as additions to or deductions from the various accounts. The equation must remain in balance. Record the following transactions in the grid provided below. 1. Transaction (a). Company sold services on account for $8,250. 2. Transaction (b). Company bought equipment for $15,000 on account....
1. For each transaction, indicate whether a company would classify the related account as an asset,...
1. For each transaction, indicate whether a company would classify the related account as an asset, liability, stockholders' equity, dividend, revenue, or expense. Transactions Related Accounts Account Classification 1. Receive cash from investors. Common Stock 2. Pay rent for the current period. Rent Expense 3. Purchase office equipment. Equipment 4. Pay cash to stockholders. Dividends 5. Provide services to customers. Service Revenue 2. Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Indicate the account classification for each...
or each of the following independent events, indicate the amounts and direction of effects on the...
or each of the following independent events, indicate the amounts and direction of effects on the elements of the statement of financial position and statement of earnings. Using the following format, indicate + for increase, and - for decrease, and NE for no effect. Also, included the specific account name affected. Transactions: Example: Rent in the amount of $1,500 is owing to the landlord at year end. Issued common share for $10,000 cash. Purchase $5,000 of inventory on account. Sold...
Net loss before taxation is ($10,500). A number of items in the profit and loss account...
Net loss before taxation is ($10,500). A number of items in the profit and loss account have to be treated differently for tax purposes. Accounting Records Taxation Records Interest income earned but not yet received 9,000 Nil Impairment of goodwill 15,000 Nil Transfer to long service leave provision 8,000 Nil Depreciation of machinery 20,000 15,000 Transfer to allowance for doubtful debts 4,500 Nil An extract from the balance sheet at balance day reveals: Assets Carrying Amount Tax Base Plant and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT