9/8/2015

5.

AssignmentPrintView
Award: 4 out of 4.00 points

Problem 2.2A Analyzing the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3
MauriceDickeyisapaintingcontractorwhospecializesinpaintingcommercialbuildings.Atthebeginning
ofJune,hisfirmsfinancialrecordsshowedthefollowingassets,liabilities,andownersequity.

Cash
AccountsReceivable
OfficeFurniture
Auto

$ 61,000
16,600
35,800
23,500

AccountsPayable
MauriceDickey,Capital
Revenue
Expenses

$ 11,200
91,500
58,600
24,400

TRANSACTIONS
1.Performedservicesfor$6,680oncredit.
2.Paid$1,700incashfornewofficechairs.
3.Received$11,200incashfromcreditclients.
4.Paid$880incashfortelephoneservice.
5.Sentacheckfor$4,500inpartialpaymentoftheamountduecreditors.
6.Paidsalariesof$9,700incash.
7.Sentacheckfor$1,120topayelectricbill.
8.Performedservicesfor$10,500incash.
9.Paid$2,350incashforautorepairs.
10.Performedservicesfor$12,500onaccount.

Entertheabovetransactionsintothefollowingaccountingequations.(Enterdecreasestoaccount
balanceswithaminussign.)

Assets
Cash
BeginningBalances

NewBalances

61,000
61,000

2.

(1,700)

3.

11,200

NewBalances

59,300

NewBalances

6,680

23,280

35,800

1,700

37,500

+
+

70,500

(880)

69,620

5.

(4,500)

6.

(9,700)

7.

(1,120)

8.

10,500

9.

(2,350)

NewBalances

65,120

NewBalances

55,420

NewBalances

54,300

NewBalances

64,800

NewBalances

62,450
10.

23,280
(11,200)

4.
NewBalances

NewBalances

1.

12,080

62,450

12,080

OfficeFurniture

35,800

12,080

12,080

37,500

12,080

37,500

37,500

12,080

37,500

37,500

12,080
12,500
$

24,580

23,500

37,500

23,500

37,500

23,500

23,500

37,500

23,500

11,200

23,500

11,200

23,500

11,200

23,500

11,200
(4,500)

6,700

23,500

6,700

91,500

91,500

91,500

91,500

+
+

91,500

91,500

6,700

91,500

6,700

91,500

=
=

6,700

=
$

M.Dickey
Capital
91,500

Accounts
Payable
11,200

23,500

Liabilities

23,500

Auto

+
$

Accounts
Receivable
$
16,600

91,500

+
$

6,700

91,500

Analyze:
Whatistheamountoftotalassetsafteralltransactionshavebeenrecorded?

$
148,030
TotalAssets

References
Worksheet

LearningObjective:0201
Recordinequationformthe
financialeffectsofabusiness
transaction.

http://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle

LearningObjective:0203Analyzetheeffectsofbusiness
transactionsonafirmsassets,liabilities,andownersequityand
recordtheseeffectsinaccountingequationform.

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9/8/2015

AssignmentPrintView
Problem2.2AAnalyzing
theeffectsof
transactionsonthe
accountingequation.LO
21,22,23

LearningObjective:0202Define,
identify,andunderstandthe
relationshipbetweenasset,
liability,andownersequity
accounts.

Problem 2.2A Analyzing the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3
MauriceDickeyisapaintingcontractorwhospecializesinpaintingcommercialbuildings.Atthebeginning
ofJune,hisfirmsfinancialrecordsshowedthefollowingassets,liabilities,andownersequity.

Cash
AccountsReceivable
OfficeFurniture
Auto

$ 61,000
16,600
35,800
23,500

AccountsPayable
MauriceDickey,Capital
Revenue
Expenses

$ 11,200
91,500
58,600
24,400

TRANSACTIONS
1.Performedservicesfor$6,680oncredit.
2.Paid$1,700incashfornewofficechairs.
3.Received$11,200incashfromcreditclients.
4.Paid$880incashfortelephoneservice.
5.Sentacheckfor$4,500inpartialpaymentoftheamountduecreditors.
6.Paidsalariesof$9,700incash.
7.Sentacheckfor$1,120topayelectricbill.
8.Performedservicesfor$10,500incash.
9.Paid$2,350incashforautorepairs.
10.Performedservicesfor$12,500onaccount.

Entertheabovetransactionsintothefollowingaccountingequations.(Enterdecreasestoaccount
balanceswithaminussign.)

Assets
Cash
BeginningBalances

61,000

1.
NewBalances
2.
NewBalances
3.
NewBalances

6,680

23,280

35,800

1,700

37,500

61,000

(1,700)

59,300

23,280

11,200

(11,200)

12,080

+
+

69,620

5.

(4,500)

65,120

6.

(9,700)

55,420

7.

(1,120)

NewBalances

OfficeFurniture

16,600

(880)

NewBalances

70,500

NewBalances

12,080

64,800

9.

(2,350)

62,450

12,080

12,500

24,580

62,450

37,500

12,080

37,500
37,500

23,500

23,500

23,500

23,500

37,500

23,500

11,200

23,500

11,200

23,500

11,200

23,500

11,200

23,500

+
+

91,500

11,200

(4,500)

6,700

91,500
91,500
91,500

6,700

91,500

6,700

91,500

6,700

91,500

=
=

91,500

6,700

=
$

91,500

M.Dickey
Capital

+
$

+
37,500

Accounts
Payable

Liabilities

+
12,080

23,500

+
37,500

37,500

23,500

10,500

10.

37,500

+
12,080

+
12,080

Auto

54,300

NewBalances

35,800

8.
NewBalances

NewBalances

4.
NewBalances

Accounts
Receivable

91,500

+
$

6,700

91,500

Analyze:
Whatistheamountoftotalassetsafteralltransactionshavebeenrecorded?

TotalAssets
$
148,030

Explanation:
Nofurtherexplanationdetailsareavailableforthisproblem.

http://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle

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