Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+)or subtraction (?).Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity.
1.The firm borrowed $4,000 from the bank; a short-term note was signed.
2.Merchandise inventory costing $1,500 was purchased; cash of $400 was
paid and the balance is due in 30 days.
3.Employee wages of $2,000 were accrued at the end of the month.
4.Merchandise that cost $700 was sold for $900 in cash.
5.This month's rent of $1,400 was paid.
6.Revenues from services during month totaled $13,000.Of this amount,
$4,000 was received in cash and the balance is expected to be received within 30 days.
7.During the month, supplies were purchased on account at a cost of $1,040,
and debited into the Supplies (asset)account.A total of $800 of supplies
were used during the month.
8.Interest of $480 has been earned on a note receivable, but has not yet been received.
Correct Answer:
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Q25: Sales on account during the month totaled
Q26: When a firm purchases supplies for
Q27: At the beginning of the current fiscal
Q28: A journal:
A)is where transactions are initially recorded.
B)is
Q29: The balance in the Accounts Receivable account
Q30: The balance in the Wages Payable account
Q31: The accounting concept/principle being applied when an
Q32: Using the column headings provided below,
Q34: The balance in the Wages Payable account
Q35: A ledger:
A)is where transactions are initially recorded.
B)is
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