acct2101 ch1 hw/quiz
Saddleback Company paid off $36,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
Assets, $36,000 decrease; liabilities, $36,000 decrease.
If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:
One asset increases $1,300 and another asset decreases $1,300, causing no effect.
The owner withdraws cash from the business
decreases an asset and equity
FBI, IRS
external
the owner invests cash in a business
increases an asset and equity
A company reported total equity of $155,000 at the beginning of the year. The company reported $220,000 in revenues and $170,000 in expenses for the year. Liabilities at the end of the year totaled $97,000. What are the total assets of the company at the end of the year?
$302,000 Assets = Liabilities + Owner's Equity Assets = $97,000 + (Beginning Equity + Revenues - Expenses) Assets = $97,000 + ($155,000 + $220,000 - $170,000)
The assets of a company total $734,000; the liabilities, $217,000. What is the total equity?
$517,000
Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and withdrawals by the owner of $12,000. The owner made no investments during the year. Calculate the ending equity.
$75,000 Ending Equity = Beginning Equity + Net Income - WithdrawalsEnding Equity = $52,000 + $35,000 - $12,000 = $75,000
Alpha Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?
Assets = Liabilities + Owner's Equity $600,000 = $250,000 + $350,000 Assets increase by $75,000 (Equipment) due to the purchase. Liabilities also increase by $75,000 (Accounts Payable) due to the purchase on credit.
If a company receives $12,600 from the owner to establish a proprietorship, the effect on the accounting equation would be:
Assets increase $12,600 and equity increases $12,600.
Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
Assets, $30,000 decrease; liabilities, $30,000 decrease. Assets = Liabilities + Owner's EquityAssets would decrease by $30,000 in Cash due to the payment of the accounts payable.Liabilities would also decrease by $30,000 in Accounts Payable due to the payment of an obligation. There is no effect on Owner's Equity.
If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:
Revenue increases $10,000.
If the liabilities of a company increased $76,000 during a period of time and equity in the company decreased $20,000 during the same period, what was the effect on the assets?
assets would have increased $56,000.
the company pays cash toward an account payable
decreases an asset and liability
brokers
external
business press
external
consumer group
external
customers
external
district attorney
external
lenders
external
shareholders
external
suppliers
external
As a general rule, revenues should not be recognized in the accounting records when earned, but rather when cash is received.
false
the company workers earn wages this period but aren't paid until next
increases a liability decreases equity
the company purchases equipment on credit
increases an asset and liability
the company purchases supplies for cash
increases/decreases an asset
controllers
internal
directors
internal
managers
internal
