Solved

Match Each Transaction to the Effects That Identifys It, You

Question 112

Matching

Match each transaction to the effects that identifys it, You may use each choice more than once or not at all.

Premises:

Responses:

Equipment is purchased by incurring a long-term mortgage payable and paying the balance in cash

– A and – SE (Retained Earnings)

Paid for transportation of equipment shipped from the vendor to our plant

+ A and + SE (Retained Earnings)

Paid for speeding ticket received while transporting the equipment to the manufacturing plant

– A and – L

Depreciated the equipment during the first year of use

– A and – SE (Contributed Capital)

Paid for lubrication and periodic tune ups of the equipment

+ A and + L

Sold the equipment, receiving more money than its book value

No change in total A, L, or SE

Premises:

Equipment is purchased by incurring a long-term mortgage payable and paying the balance in cash

Paid for transportation of equipment shipped from the vendor to our plant

Paid for speeding ticket received while transporting the equipment to the manufacturing plant

Depreciated the equipment during the first year of use

Paid for lubrication and periodic tune ups of the equipment

Sold the equipment, receiving more money than its book value

Responses:

– A and – SE (Retained Earnings)

+ A and + SE (Retained Earnings)

– A and – L

– A and – SE (Contributed Capital)

+ A and + L

No change in total A, L, or SE

Correct Answer:

Premises:

Responses:

Equipment is purchased by incurring a long-term mortgage payable and paying the balance in cash

Paid for transportation of equipment shipped from the vendor to our plant

Paid for speeding ticket received while transporting the equipment to the manufacturing plant

Depreciated the equipment during the first year of use

Paid for lubrication and periodic tune ups of the equipment

Sold the equipment, receiving more money than its book value

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