In: Accounting
Note: Treat each of the questions below as a separate question. There is no carry over from one question to the next.
Assets Liabilities
Assets Liabilities
Assets Liabilities
Assets Liabilities
Assets Liabilities
1)
A) Bond Sold and receieved Cash (it is taken a bond issued)
Asset : $200
Liabilities : $200
Cash is increased and Bonds payable is increased
B) If it is taken as bonds in investment sold
Assets : 0 ($250-$250)
Liabilities : 0
Bonds in investment portfolio decreased and cash increased
2) Shift from Savings account to Checking account.
Assets : 0 ($30-$30)
Liabilities : 0
Amount transferred from Savings account to Checking account (both are part of Cash & Equivalents)
3)
A) Sold stock worth 50 to receive cash (Taken as investments held are now sold)
Assets : $0 ($50-$50)
Liabilities : 0
Investment in assets decrease and cash balance increase. No change in net worth.
B) If it is taken as stocks issued (stock sold)
Assets : $50
Liabilities : $50
Networth will increase by $50 due to increase in common stock value
4) Question is not clear
A) Assumed it as withdrawal of $100 from savings account
Assets : 0 ($100-$100)
Liabilities : 0
Savings account balance is decreased and Cash in hand balance is increased
B) If it is assumed a borrowing of $100
Assets : $100
Liabilities : $100
Borrowings will increase and Cash & Equivai will also increase
5) Bond Purchase $50
Assets : 0 ($50-$50)
Liabilities : 0
When a bond purchased, it increases investment balance and also decrease the Cash & Equivalents. No change in reserves
Note :
Some words have two meanings, so answered this question keeping in view of those two meanings. (Shown both the types)