Quiz 1: P1: Business Transactions Ptrans

Business

The required worksheet is shown below: img

The objective of this problem is to show that how different transactions can affect the financial position of a business. Use the following data to fill in the worksheet: a. Open account and make a deposit - $9,000. This transaction increases cash and increases owner's equity as well. b. Paid expenses - $3,000. This transaction decreases cash and decreases accounts payable as well. c. Purchased supplies on account - $1,980. This transaction increases office supplies and increases accounts payable. d. Received cash payment - $4,500. This transaction increases cash and increases owner's equity as well. e. Paid creditor - $1,400. This transaction decreases cash and decreases accounts payable as well. f. Purchased supplies - $420. This transaction decreases cash and increases office supplies. g. Billed customer for services - $4,600. This transaction increases accounts receivable and increases owner's equity as well. h. Paid bill - $360. This transaction decreases cash and decreases accounts payable as well. i. Paid salary - $2,400. This transaction decreases cash and decreases accounts payable as well. j. Returned $300 in supplies from transaction f for full refund. This transaction increases cash and decreases office supplies. k. Received cash from billed customer - $3,000. This transaction increases cash and decreases accounts receivable. l. Cash withdrawal - $2,000. This transaction decreases cash and decreases owner's equity as well. After recording these transactions, total assets will be equal to total liabilities plus owner's equity. The completed spreadsheet is shown below: img

It is given that the cost of supplies for last month was $600. To complete the transaction in the worksheet, office supplies will need to be decreased by $600 and owner's equity will need to be decreased by $600. The transaction will be entered on line m. At the end of all these transactions, total assets will be equal to total liabilities plus owner's equity. The modified spreadsheet is shown below: img

Related Quizzes