Wk 4 HW - Week 4 HW for ACCG100 PDF

Preview

Summary

Week 4 HW for ACCG100...

Description

ACCG1000 Tutorial Text reference: Ch. 2, pp.94-106 Homework Questions: Chapter 2: Q2.3 (p. 136) 2.3 Indicate how each business transaction affects the basic accounting equation (Assets = Liabilities + Equity) (a) Paid cash for cleaning services.

Decrease assets (cash and decreased by credit) and decrease in equity (cleaning expenses and decreased by debit) Decrease assets (cash and decreased by credit) and decrease in equity (cleaning expenses and decreased by debit) - Decrease in assets (cash and credit) - Decrease in equity (cleaning expenses and debt) (b) Purchased equipment for cash - Increased assets (equipment and increase by debt) - decrease in asset (cash) (c) Issued shares to investors in exchange for cash. - Increase asset (cash and decreased by credit - Increase equity (shares and increased by credit) (d) Paid an account payable in full. - Decrease asset (cash and decreased by credit) - Decrease liabilities (accounts payable and decreased by debts) Chapter 2: Q2.6 (p.136)

2.6 State the rules of debit and credit as applied to (a) asset accounts - Increased by debit - Decreased by credit (b) liability accounts - Decreased by debit - Increased by credit (c) the share capital account - Decreased by debit - Increased by credit (d) revenue accounts - Decreased by debit - Increased by credit (e) expense accounts - Increase by debit - Decrease by credit (f) dividend account - Increase by debit - Decrease by credit Chapter 2: BE2.1 & 2.2 (p. 137) BE2.1 Determine effect on basic accounting equation. Presented here are three economic events. On a sheet of paper, list the letters (a), (b) and (c) with columns for assets, liabilities and equity. In each column, indicate whether the event increased (+), decreased (−) or had no effect (NE) on assets, liabilities and equity. Assets Liabilities Equity + + NE Purchased equipment on account + NE + Received cash for providing a service NE NE Received cash from - / + a customer who had purchased goods the previous week on account BE2.2 Indicate debit and credit effects. For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.

Accounts payable Advertising expense Service revenue Accounts receivable Retained earnings Dividends

Debit Decrease Increase Decrease Increase Decrease Increase

Credit Increase Decrease Increase Decrease Increase Decrease

Normal Credit Debit Credit Debit Credit Debit

Chapter 2: E2.1 (p. 138) E2.1 Analyse the effect of transactions. (Describe the effect of each transaction on assets, liabilities and equity. For example, the first answer is: (1) Increase in assets and increase in equity.) Selected transactions for Speedy Lawn Care Pty Ltd are listed here: 1. Issued shares to investors in exchange for cash. Increase in assets and increase in equity 2. Paid monthly rent. Decrease in assets and decrease in equity 3. Received cash from customers when service was rendered. Increase in assets and increase in equity 4. Invoiced customers for services performed. Increase in assets and increase in equity 5. Paid dividend to shareholders. Decrease in assets and decrease in equity 6. Incurred advertising expense on account. Increase in liabilities and decrease in equity 7. Received cash from customers invoiced in (4). Increase in assets and decrease in assets 8. Purchased additional equipment for cash. Increase in assets and decrease in assets 9. Purchased equipment on account. Increase in assets and increase in liabilities

A C C G2 2 4 I n

t e r m e d i a t e F i n a n c i a

l A c c o u n t i n g S 1 , 2 0 1

6 1 ACCG100 Accounting in Society

ACCG100 Week 4 Tutorial Financial Accounting for business: Double-entry accounting S a m p l e So

l u t i o n s W A R N I N G : M e m o

r i s i n g t h e s e so l u t i o n s will n o

t h e l p you f o r t h e class test and t h e f n a l

e x a m w h e r e we e x pe c t r e s p o n s e

s in y o u r own w o r d s showing y o u r c o n c ep

t u a l u nd e r s t a nd i n g and y o u r a b i

l i t y t o c r i t i c a ll y a n a l y s e

t h e issues we a r e discussing. The so l u t i o n s a r e

o n l y a gu i d e l i n e showing i f you a r e on t h

e r i g h t t r a c k and i f you have t h o ug h t o

f all t h e p o i n t s t o be d i s c u ss e d

.

Chapter 2: Q2.3 (a) Decrease assets, cash and decrease in equity, cleaning expenses. (b) Increase assets, equipment and decrease assets cash. (c) Increase assets, cash and increase equity, share capital (d) Decrease assets, cash and decrease liabilities, accounts payable. Chapter 2: Q2.6

(a) Asset accounts are increased by debits and decreased by credits. (b) Liability accounts are decreased by debits and increased by credits. (c) The share capital account is decreased by debits and increased by credits. (d) Revenue accounts are decreased by debits and increased by credits. (e) Expense accounts are increased by debits and decreased by credits. (f) Dividend account are increased by debits and decreased by credits.

Chapter 2: BE2.1 Assets Liabilities Equity (a) + + NE (b) + NE + (c) – & + NE NE...