For each transaction listed, determine the effect on the February financial statements. Indicate + for increase, or – for decrease. Leave the cell blank if there is no effect.
| Balance Sheet | Income Statement | ||||||
|---|---|---|---|---|---|---|---|
| Transaction | Assets | Liabilities | SHE | Revenue | Expenses | Net Income | |
| 1 | Paid wages earned in January | — | — | ||||
| 2 | Prepaid rent expired | — | — | + | — | ||
| 3 | Performed service which customer had paid for in January | — | + | + | + | ||
| 4 | Collected on credit sales made in Jan. | ||||||
| 5 | Depreciation on equipment was recorded | — | — | + | — | ||
| 6 | Hired a new manager and signed a contract to pay her $60,000 per year. | ||||||
| 7 | Dividends were declared an immediately paid | — | — | ||||
| 8 | Purchased shares of another company’s stock for cash | ||||||
| 9 | Performed a service for a customer, collected three fourths in cash and balance on account. | + | + | + | + | ||
| 10 | Purchased a patent, paying cash | ||||||
| 11 | Incurred expenses, paid four-fifths in cash and put the balance on account | — | + | — | + | — | |
| Click Here to View All Chapter 3 Problems at Once | View | ||
| 1 | Closing Journal Accounts | Easy | |
| 2 | Adjusting Entry Identification | Easy | |
| 3 | Current Assets | Easy | |
| 4 | Revenue Journal Entry | Easy | |
| 5 | Revenue Recognition | Easy | |
| 6 | Revenue Recognition | Easy | |
| 7 | Determining Net Income From Transactions | Moderate | |
| 8 | Revenue Recognition | Moderate | |
| 9 | Adjusting Entry - Wage Expense | Moderate | |
| 10 | Closing Process | Moderate | |
| 11 | Determining Net Income From Journal Entries | Moderate | |
| 12 | Adjusting Entry - Salaries Payable | Moderate | |
| 13 | Prepaid Rent | Moderate | |
| 14 | When You Forget to do Adjusting Entries | Hard | |
| 15 |
The Effect of Transactions
You are here. |
Hard | |
| 16 | Account Classifications | Hard | |
| 17 | Revenue and Expense Recognition | Hard | |
| 18 | Adjusting Journal Entries | Hard | |
| 19 | Adjusting Journal Entries | Hard | |
| 20 | Year End Closing & Account Classification | Hard |
| 1 | Current Assets | 9:57 | |
| 2 | Non-Current Assets | 10:25 | |
| 3 | Current Liabilities | 6:24 | |
| 4 | Non-Current Liabilites | 2:00 | |
| 5 | The Classified Balance Sheet | 4:48 | |
| 6 | Cash vs. Accrual Accounting | 7:21 | |
| 7 | Expense Recognition | 8:07 | |
| 8 | Accruals and Deferrals | 15:07 | |
| 9 | What is an Adjusting Entry? | 4:11 | |
| 10 | Adjusting Entry: Supplies | 1:54 | |
| 11 | Adjusting Entry: Wages | 4:52 | |
| 12 | Adjusting Entry: Unearned Revenue | 2:11 | |
| 13 | Adjusting Entry: Interest | 2:03 | |
| 14 | Contra-accounts | 4:40 | |
| 15 | Depreciation | 7:10 | |
| 16 | The Closing Process | 10:37 |