Question

In: Accounting

Business Transactions for each company: (OAKLEY and Columbia Sportswear), based on the accounts described in the...

Business Transactions for each company: (OAKLEY and Columbia Sportswear), based on the accounts described in the financial statements, hypothesize at least five types of business transactions the company may have and the effect on the accounting equation).

Solutions

Expert Solution

There are three main variables of an accounting equation:-

1) Total Asset :- It includes the following Assets

Current Assets

  • Cash
  • Accounts Receivable
  • Prepaid Expense

Fixed Assets

  • Vehicle
  • Buildings

Intangible Assets

  • Goodwill
  • Copyrights
  • Patents

2) Total Liabilities : It includes the following Assets:-

  • Accounts payable
  • Bank loans
  • Lines of Credit
  • Personal Loans
  • Officer Loans
  • Unearned income

3) Capital.

Accounting Equation is as follows:-

Total Assets = Total Liabilities + Capital

The effects of business transactions on accounting equation as follows:-

1) Transactions affecting only one element.

2) Transaction affecting any two of the three elements.

3) Transactions affecting all the three elements.

Types of Business Transaction and effect on Accounting Equation

1) Purchase of Some Furniture amounting $2500 by OAKLEY and Columbia Sportswear.

Effect on Assets only

Cash/Bank will be reduced by $2500 (-) and Furniture will be added by $2500 (+) on the Total Asset Side.

2) Purchase of Goods on Credit amounting $1000 by OAKLEY and Columbia Sportswear.

Effect on Liability Side and Asset Side.

Stock will be added on Asset Side by $1000 (+) and Liability will be increased by $1000.

3) Payment to creditor amounting $500 by OAKLEY and Columbia Sportswear.

Effect on Liability Side and Asset Side.

Cash/Bank will be reduced by $2500 (-) and Liability will be reduced by $500(-).

4) Sale of Furniture amounting $1500by OAKLEY and Columbia Sportswear.

Effect on Assets only

Cash/Bank will be added by $1500 (+) and Furniture will be reduced by $1500 (-) on the Total Asset Side.

5) Brought in a cash of $ 1,00,000 as additional capital contribution for the business.

Effect on Assets only

Capital will be added by $100,000(+) and Cash will be added by $100,000 (+) on the Total Asset Side.

ekkarill92 answered 10 months ago
Next > < Previous

Related Solutions

Financial Reporting Problem: Columbia Sportswear Company The financial statements for the Columbia Sportswear Company are available...
Financial Reporting Problem: Columbia Sportswear Company The financial statements for the Columbia Sportswear Company are available on this book’s Website. Required Answer the following questions: a. How much did Columbia Sportswear’s cash and cash equivalents decrease in 2014? b. What was the largest source of cash and cash equivalents in 2014? c. What was the single largest use of cash and cash equivalents in 2014? d. How much dividends were paid in 2014? e. Why do depreciation and amortization, both...
Please answer the following questions based on the Columbia Sportswear Company 2017 10-K. (Link to the...
Please answer the following questions based on the Columbia Sportswear Company 2017 10-K. (Link to the Columbia's 10K: http://files.shareholder.com/downloads/COLM/6230778634x0x977594/E27E55DB-E7E3-4C4A-BA09-B8BB85FB2893/2018_Combined_Shareholder_Letter_and_10-K.pdf) 1. Assets classified as Property, Plant and Equipment can be either acquired for use in operations, or acquired for resale. a. True b. False 2. What is the December 31, 2017 balance (in thousands) of Land and Improvements for Columbia Sportswear Company? a. $21,065 b. $21,862 c. $21,049 d. $20,862 3. What is the December 31, 2017 balance (in thousands) of...
Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia...
Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A, and Under Armour, Inc's financial can be found in Appendix B at the end of this book. Columbia Statements are here: http://www.chegg.com/homework-help/questions-and-answers/financial-statements-columbia-sportswear-company-presented-appendix-b-based-information-fi-q20398389 Columbia annual reports are here: http://investor.columbia.com/annuals.cfm Under Armour Statements are here: Keep scrolling you will see the info needed. https://www.sec.gov/Archives/edgar/data/1336917/000133691715000006/ua-20141231x10k.htm Under Armour annual reports are here: http://www.annualreports.com/Company/under-armour-inc Required a) Calculate the accounts receivable turnover...
Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia...
Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A, and Under Armour, Inc's financial can be found in Appendix B at the end of this book. Columbia Statements are here: http://www.chegg.com/homework-help/questions-and-answers/financial-statements-columbia-sportswear-company-presented-appendix-b-based-information-fi-q20398389 Columbia annual reports are here: http://investor.columbia.com/annuals.cfm Under Armour Statements are here: Keep scrolling you will see the info needed. https://www.sec.gov/Archives/edgar/data/1336917/000133691715000006/ua-20141231x10k.htm Under Armour annual reports are here: http://www.annualreports.com/Company/under-armour-inc Required a) Compare the dollar value of...
For each of the transactions described here, which of at least two accounts on a bank’s...
For each of the transactions described here, which of at least two accounts on a bank’s balance sheet (Report of Condition) would be affected by each transaction? Sally Mayfield has just opened a time deposit in the amount of $6,000, and these funds are immediately loaned to Robert Jones to purchase a used car. Arthur Blode deposits his payroll check for $1,000 in the bank, and the bank invests the funds in a government security. The bank sells a new...
The financial statements of Columbia Sportswear Company are presented in Appendix B. Click here to view...
The financial statements of Columbia Sportswear Company are presented in Appendix B. Click here to view Appendix B. The financial statements of VF Corporation are presented in Appendix C. Click here to view Appendix C. Answer the following questions for each company. (a) Based on the information in these financial statements, compute the 2016 return on common stockholders’ equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear...
Accounts and Notes Payable. Described below are certain transactions of Lamar Company for 2018: 1. On...
Accounts and Notes Payable. Described below are certain transactions of Lamar Company for 2018: 1. On May 10, the company purchased goods from Fox Company for $75,000, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $150,000 from Rao Company, paying $50,000 in cash and giving a one-year, 9% note for the balance. 3. On September 30, the company discounted at...
INSTRUCTIONS: Indicate the accounts to be debited and credited in recording the selected transactions described below...
INSTRUCTIONS: Indicate the accounts to be debited and credited in recording the selected transactions described below by inserting the letter designations in the appropriate columns. ACCOUNTS A. Accounts Receivable F. Fees Earned K. Rent Revenue O. Supplies Expense B. Accumulated Depreciation G. Land L. Salaries Expense P. Taxes Expense C. Advertising Expense H. Prepaid Advertising M. Salaries Payable Q. Taxes Payable D. Depreciation Expense I. Prepaid Rent N. Supplies R. Unearned Fees E. Equipment J. Rent Expense DESCRIPTIONS Debit Credit...
THE SMITH COMPANY Using the business transactions below, complete t-accounts for the Smith Company. I have...
THE SMITH COMPANY Using the business transactions below, complete t-accounts for the Smith Company. I have provided a blank sheet of t-accounts as an attachment to this assignment. The company started business on June 1, 2019. a. John Smith, owner, invested $120,000 cash in the company. b. The company purchased $10,000 of office equipment on credit. c. The company billed a customer $2,000 as fees for services provided. d. The company paid $1,000 cash for the monthly rent. e. The...
For each of the following transactions, indicate the accounts affected and whether the accounts affected are...
For each of the following transactions, indicate the accounts affected and whether the accounts affected are an asset, a liability, an equity, an income or an expense. Also indicate whether the accounts are being increased or decreased and whether the increase or decrease is a debit or credit. Ignore GST. 1. Owner gave their personal computer to the business. 2. Employed a secretary. 3. Purchased supplies on credit. 4. Paid a creditor using an electronic transfer. 5. Invoiced a customer...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT