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  • Balance Sheet Income Statement Cash Asset + Noncash Assets Liabil-Ities + Contrib. Capital + Earned Capital Rev - Enues - Expen - Ses Net Income

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    Abhishek Chandna
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    1. The document shows accounting transactions that affect a company's balance sheet and income statement. 2. Various transactions are recorded that increase or decrease assets, liabilities, contributed capital and earned capital. 3. The net effect of the transactions is an increase in the company's net income of $12,450 for the period.

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    Problem 1 Solution

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    1. The document shows accounting transactions that affect a company's balance sheet and income statement. 2. Various transactions are recorded that increase or decrease assets, liabilities, contributed capital and earned capital. 3. The net effect of the transactions is an increase in the company's net income of $12,450 for the period.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views1 page

    Balance Sheet Income Statement Cash Asset + Noncash Assets Liabil-Ities + Contrib. Capital + Earned Capital Rev - Enues - Expen - Ses Net Income

    Uploaded by

    Abhishek Chandna
    1. The document shows accounting transactions that affect a company's balance sheet and income statement. 2. Various transactions are recorded that increase or decrease assets, liabilities, contributed capital and earned capital. 3. The net effect of the transactions is an increase in the company's net income of $12,450 for the period.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Balance Sheet Income Statement

    Cash Noncash Liabil- Contrib. Earned Rev- Expen- Net


    Transaction + = + + =
    Asset Assets ities Capital Capital enues ses Income

    +11,400
    11,400 +11,400
    1) = (Retained = +11,400
    (Fees Rec.) (Sales)
    Earnings)

    -4,800 -4,800 +4,800


    2) (Prepaid = (Retained (Advert. = -4,800
    Advertising) Earnings) Exp.)

    +4,800
    -4,800 -4,800
    (Maint-
    3) (Prepaid = (Retained = -4,800
    enance
    Expenses) Earnings)
    Exp)

    +1,920 -1,920 +1,920


    4) = (Rent (Retained (Rent = -1,920
    Payable) Earnings) Exp.)

    +1,200 +1,200 +1,200


    5) (Interest = (Retained (Interest = +1,200
    Receivable) Earnings) Income)

    -10,440 +10,440
    -10,440
    6) = (Retained (Depn = -10,440
    (PPE, net)
    Earnings) Exp.)

    +15,000 -15,000 +15,000


    7) = (Wages (Retained (Wages = -15,000
    Payable) Earnings) Exp.)

    +12,450
    +12,450 +12,450
    8) = (Retained = +12,450
    (AR) (Sales)
    Earnings)

    +2,400 -2,400 +2,400


    9) = (Interest (Retained (Interest = -2,400
    Payable) Earnings) Exp.)

    -12,000 +12,000
    +12,000
    10) = (Unearned (Retained = +12,000
    (Sales)
    Revenue) Earnings)

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