Accounting Applications_Part 2

APPLICATION (1):

REQUIRED: PREPARE A TABLE SHOWEING THE EFFECT OF EACH OF THE PREVIOUS TRANSACTIONS ON
THE ACCOUNITNG EQUATION.

APPLICATION (2)

REQUIRED: PREPARE A TABLE SHOWEING THE EFFECT OF EACH OF THE PREVIOUS TRANSACTIONS ON
THE ACCOUNITNG EQUATION.
APPLICATION (3)

REQUIRED: PREPARE A TABLE SHOWEING THE EFFECT OF EACH OF THE PREVIOUS TRANSACTIONS ON
THE ACCOUNITNG EQUATION.

1
 Answers

APPLICATION (1)

Assets = Liabilities + Equity

J.D. J.D.
Accounts Office Accounts
Date Cash + + = + Simpson, – Simpson, + Revenues – Expenses
Receivable Equipment Payable
Capital Withdrawals

May 1 +$60,000 = + $60,000

1 - 3,200 = – $3,200
3 + $1,680 = + $1,680
5 - 800 = – 800
8 + 4,600 = + $4,600
12 + $3,000 = + 3,000
15 - 850 = – 850
20 + 3,000 – 3,000 =
22 + 2,800 = + 2,800
25 + 2,800 – 2,800 =
26 - 1,680 = – 1,680
27 = + 60 – 60
28 - 850 = – 850
30 - 200 = – 200
30 - 480 = – 480
31 - 1,200 = – $1,200
$61,140 + $ 0 + $1,680 = $ 60 + $60,000 – $1,200 + $10,400 – $6,440
APPLICATION (2)

Accounts Equip-
Cash + + = Accounts Payable + L. Gold, Capital – L. Gold, Withdrawals + Revenues – Expenses
Receivable ment
a. +$50,000 + $10,000 = + $60,000
b. – 1,600 ______ ______ – $1,600
Bal. 48,400 + + 10,000 = + 60,000 – 1,600
c. _______ + 12,000 +$12,000 ______ _____
Bal. 48,400 + + 22,000 = 12,000 + 60,000 – 1,600
d. + 2,000 ______ _______ ______ + $2,000 _____
Bal. 50,400 + + 22,000 = 12,000 + 60,000 + 2,000 – 1,600
e. _______ + $7,000 ______ _______ ______ + 7,000 _____
Bal. 50,400 + 7,000 + 22,000 = 12,000 + 60,000 + 9,000 – 1,600
f. – 8,000 ______ + 8,000 _______ ______ _____ _____
Bal. 42,400 + 7,000 + 30,000 = 12,000 + 60,000 + 9,000 – 1,600
g. – 2,400 ______ ______ _______ ______ _____ – 2,400
Bal. 40,000 + 7,000 + 30,000 = 12,000 + 60,000 + 9,000 – 4,000
h. + 5,000 - 5,000 ______ _______ ______ _____ _____
Bal. 45,000 + 2,000 + 30,000 = 12,000 + 60,000 + 9,000 – 4,000
i. – 12,000 ______ ______ – 12,000 ______ _____ _____
Bal. 33,000 + 2,000 + 30,000 = 0 + 60,000 + 9,000 – 4,000
j. – 500 ______ ______ _______ ______ – $500 _____ _____
Bal. $32,500 + $2,000 + $30,000 = $ 0 + $60,000 – $500 + $9,000 – $4,000
APPLICATION (3)
Assets = Liabilities + Equity
Accounts Office Accounts
Cash + + + Office Equipment + Building = + Notes Payable + M. Right,Capital - M. Right Withdrawals + Revenues - Expenses
Receivable Supplies Payable
a. +$60,000 + $30,000 + $90,000
b. - 50,000 + $300,000 + $250,000
Bal. 10,000 + 30,000 + 300,000 = + 250,000 + 90,000
c. - 6,000 + 6,000
Bal. 4,000 + 36,000 + 300,000 = + 250,000 + 90,000
d. + $4,000 + 1,000 + $5,000
Bal. 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000
e. - 1,000 - $1,000
Bal. 3,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 - 1,000
f. + $4,000 + $4,000
Bal. 3,000 + 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 + 4,000 - 1,000
g. + 8,000 + 8,000
Bal. 11,000 + 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 + 12,000 - 1000
h. - 1,800 - $1,800
Bal. 9,200 + 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 - 1,800 + 12,000 - 1,000
i. + 3,000 - 3,000
Bal. 12,200 + 1,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 - 1,800 + 12,000 - 1,000
j. - 500 - 500
Bal. 11,700 + 1,000 + 4,000 + 37,000 + 300,000 = 4,500 + 250,000 + 90,000 - 1,800 + 12,000 - 1,000
k. - 2,500 - 2,500
Bal. $9,200 + $1,000 + $4,000 + $37,000 + $300,000 = $4,500 + $250,000 + $90,000 - $1,800 + $12,000 - $3,500