C O Not secure ezto.mheducation.com/m.tpx a. Paid wages of $1.450 for the curren

Question

C O Not secure ezto.mheducation.com/m.tpx a. Paid wages of $1.450 for the current period (oxample) b. Borrowed $7,250 cash from local bank using a short-terrm nole c. Purchased $2.900 of equipment on credit d. Earned $580 of sales revenue; collected cash e. Received $1.180 of utlities services, on credit f. Eamed $2,450 of service revenue, on credit Paid $435 cash on account to a supplier h. Incurred $100 of travel expenses; paid cash L Eamed $580 of service revenue; collected halt in cash, with balance on cred Collected $160 cash from customers on account Incurred $420 of advertising costs; paid half in cash, with balance on credt Required: 1. For each of the transactions, complete the table bolow, indicating the account, amount, and direction of the effect (+ for increase and -for decroase) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders equity, as shown for the first transaction, which is provided as an example. Also, determine the company's preliminary net income. (Enter any decreases to account balances with a minus sign.) Assets Salaries and Wages Expense (1.450) a. Cash b. (1,450 Note Payable (short-term) 7.250 d. g. h. k. 2. Determine the company's preliminary net income. eliminary Net Income

Explanation / Answer

1 Assets = Liabilities + Stockholders' Equity a. Cash -1450 = + Salaries and Wages Expense -1450 b. Cash 7250 = Notes Payable(Short Term) 7250 + c. Equipment 2900 = Accounts Payable 2900 + d. Cash 580 = + Sales Revenue 580 e. = Utilities Payable 1160 + Utilities Expense -1160 f. Accounts Receivable 2450 = + Service Revenue 2450 g. Cash -435 = Accounts Payable -435 + h. Cash -100 = + Travel Expenses -100 i. Cash 290 = + Service Revenue 580 Accounts Receivable 290 = + j. Cash 160 = + Accounts Receivable -160 = + k. Cash -210 = Accounts Payable 210 + Advertising Costs -420 Net Income 480 2 Preliminary Net Income = $480

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.