drill 1 - d2 determining how revenue, expense, and withdrawal transactions change an accounting…

drill 1 - d2 determining how revenue, expense, and withdrawal transactions change an accounting equation\ninstructions:\ndecide which accounts in the accounting equation are changed by each of the following transactions. place a plus (+) in the appropriate column if the account is increased. place a minus (-) in the appropriate column if the account is decreased.\ntransactions\n1. received cash from owner as an investment.\n2. received cash from sales.\n3. paid cash for telephone bill.\n4. paid cash for advertising.\n5. paid cash to owner for personal use.\n6. paid cash for rent.\n7. received cash from sales.\n8. paid cash for equipment repairs.\n9. bought supplies on account from maxwell company.\n10. paid cash for insurance.\n11. received cash from sales.\n12. paid cash on account to maxwell company.\n|assets|=|liabilities|+|owners equity|\n|----|----|----|----|----|\n|trans. no.|cash|+|supplies|+|prepaid insurance|=|maxwell company|+|susan sanders, capital|\n|1.|$2,000| | | | | |\n|2.| | | | | | |\n|3.| | | | | | |\n|4.| | | | | | |\n|5.| | | | | | |\n|6.| | | | | | |\n|7.| | | | | | |\n|8.| | | | | | |\n|9.| | | | | | |\n|10.| | | | | | |\n|11.| | | | | | |\n|12.| | | | | | |\n© 2019 cengage learning. all rights reserved. may not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

drill 1 - d2 determining how revenue, expense, and withdrawal transactions change an accounting equation\ninstructions:\ndecide which accounts in the accounting equation are changed by each of the following transactions. place a plus (+) in the appropriate column if the account is increased. place a minus (-) in the appropriate column if the account is decreased.\ntransactions\n1. received cash from owner as an investment.\n2. received cash from sales.\n3. paid cash for telephone bill.\n4. paid cash for advertising.\n5. paid cash to owner for personal use.\n6. paid cash for rent.\n7. received cash from sales.\n8. paid cash for equipment repairs.\n9. bought supplies on account from maxwell company.\n10. paid cash for insurance.\n11. received cash from sales.\n12. paid cash on account to maxwell company.\n|assets|=|liabilities|+|owners equity|\n|----|----|----|----|----|\n|trans. no.|cash|+|supplies|+|prepaid insurance|=|maxwell company|+|susan sanders, capital|\n|1.|$2,000| | | | | |\n|2.| | | | | | |\n|3.| | | | | | |\n|4.| | | | | | |\n|5.| | | | | | |\n|6.| | | | | | |\n|7.| | | | | | |\n|8.| | | | | | |\n|9.| | | | | | |\n|10.| | | | | | |\n|11.| | | | | | |\n|12.| | | | | | |\n© 2019 cengage learning. all rights reserved. may not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Answer

Explanation:

Step1: Analyze transaction 1

Received cash from owner as an investment increases cash (asset) and owner's equity.

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
1 + +

Step2: Analyze transaction 2

Received cash from sales increases cash (asset) and owner's equity (through revenue which increases equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
2 + +

Step3: Analyze transaction 3

Paid cash for telephone bill decreases cash (asset) and owner's equity (through expense which reduces equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
3 - -

Step4: Analyze transaction 4

Paid cash for advertising decreases cash (asset) and owner's equity (through expense which reduces equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
4 - -

Step5: Analyze transaction 5

Paid cash to owner for personal use decreases cash (asset) and owner's equity (through withdrawal which reduces equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
5 - -

Step6: Analyze transaction 6

Paid cash for rent decreases cash (asset) and owner's equity (through expense which reduces equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
6 - -

Step7: Analyze transaction 7

Received cash from sales increases cash (asset) and owner's equity (through revenue which increases equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
7 + +

Step8: Analyze transaction 8

Paid cash for equipment repairs decreases cash (asset) and owner's equity (through expense which reduces equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
8 - -

Step9: Analyze transaction 9

Bought supplies on account from Maxwell Company increases supplies (asset) and liabilities (Maxwell Company).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
9 + +

Step10: Analyze transaction 10

Paid cash for insurance increases prepaid insurance (asset) and decreases cash (asset).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
10 - +

Step11: Analyze transaction 11

Received cash from sales increases cash (asset) and owner's equity (through revenue which increases equity).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
11 + +

Step12: Analyze transaction 12

Paid cash on account to Maxwell Company decreases cash (asset) and liabilities (Maxwell Company).

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
12 - -

Answer:

Trans. No. Cash Supplies Prepaid Insurance Maxwell Company Susan Sanders, Capital
1 + +
2 + +
3 - -
4 - -
5 - -
6 - -
7 + +
8 - -
9 + +
10 - +
11 + +
12 - -