By Jerry J. Weygandt
Weygandt's Accounting ideas introduces not easy accounting suggestions with examples which are customary to accountants. the recent variation has been up to date with the most recent IFRS/IASB criteria. extra assurance is incorporated on foreign currencies translation and LCM. extra discussions specialize in chance administration as a result monetary situation. The examples additionally emphasize present examples with a purpose to support accountants make the relationship to their daily lives.
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Use appropriate category names (not descriptions). ✔ Keep the accounting equation in balance. Solution ⎧ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎨ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎩ 5 Liabilities 1 Owner’s Equity Accounts Owner’s Owner’s Cash 1 Equipment 5 Payable 1 Capital 2 Drawings 1 Revenues 2 Expenses 1. 1$25,000 1$25,000 2. 1$7,000 1$7,000 3. 18,000 1$8,000 4. 2850 2$850 5. 21,000 2$1,000 $ 31,150 1 $7,000 5 $7,000 1 $25,000 2 $1,000 1 $8,000 2 $850 ⎧ ⎪ ⎪ ⎪ ⎪ ⎪ ⎨ ⎪ ⎪ ⎪ ⎪ ⎪ ⎩ Assets $38,150 $38,150 Related exercise material: BE1-6, BE1-7, BE1-8, BE1-9, E1-6, E1-7, E1-8, E1-10, E1-11, and Do it!
These obligations are called accounts payable. • Campus Pizza also has a note payable to First National Bank for the money borrowed to purchase the delivery truck. • Campus Pizza may also have salaries and wages payable to employees and sales and real estate taxes payable to the local government. All of these persons or entities to whom Campus Pizza owes money are its creditors. Creditors may legally force the liquidation of a business that does not pay its debts. In that case, the law requires that creditor claims be paid before ownership claims.
3. 4. 5. 6. 7. 8. Joan invested $11,000 in cash in the law practice. Paid $800 for July rent on office space. Purchased office equipment on account $3,000. Provided legal services to clients for cash $1,500. Borrowed $700 cash from a bank on a note payable. Performed legal services for client on account $2,000. Paid monthly expenses: salaries and wages $500, utilities $300, and supplies $100. Joan withdraws $1,000 cash for personal use. Instructions (a) Prepare a tabular summary of the transactions.