Question

In: Accounting

Record the below transactions including adjustments as + and - entries under the below accounting equation...

Record the below transactions including adjustments as + and - entries under the below accounting equation sheet.

Cash

Accounts

Inventory

Equipment

Accum

Prepaid

Accounts

Notes

Interest

Wages

Income

Bonds

Common

Retained

Receivable

Deprec.

Insurance

Payable

Taxes

Payable

Stock

Earnings

Prepaid insurance-This year and Next Year 6,300
Sales Revenue for year of 88,000, (12,600 in cash) (15,300 Inventory Sold)
Paid wages during the current period 6,400
AP Bills to supplies of 11,000

Declared and paid 1,000 dividends to shareholders

Solutions

Expert Solution

The Basic Principle of financial accounting is the Accounting Equation.

The Accounting Equation is Assets = Liabilities + Equity

Assets are resources controlled by the firm because of past transactions that are expected provide future benefits.

Liabilities are the obligations as a result of past events that are expected require an outflow of economic resources

Equity is the residual interest in the assets of the firm after deducting the liabilities. Equity consists of contributed capital and retained earnings

Assets = Liabilities + Contributed Capital + ending Retained Earnings

Assets = Liabilities + Contributed Capital + Beginning Retained Earnings + Net Income - Dividends

Assets = Liabilities + Contributed Capital + Beginning Retained Earnings + Revenue - Expense - Dividends

ekkarill92 answered 2 years ago

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