Exam 1 review
Popular in Accounting
Popular in Accounting
This 2 page Study Guide was uploaded by jemialk on Thursday September 1, 2016. The Study Guide belongs to acct 2110 at Auburn University taught by Cornett in Fall 2016. Since its upload, it has received 35 views. For similar materials see Accounting in Accounting at Auburn University.
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Date Created: 09/01/16
Class 8/25 Thursday, August 25, 2016 1:56 PM Problem 2‐56A Analyzing Transactions OBJECTIVE 3Analyze the effect of business transactions on the accounting equation.7Prepare a trial balance and explain its purpose. Luis Madero, after working for several years with a large public accounting firm, decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting Services. The following captions and amounts summarize Madero’s balance sheet at July 31, 2013. The following events occurred during August 2013. 1. Issued common stock to Ms. Garriz in exchange for cash. 2. Paid for first month’s rent on office space. 3. Purchased supplies of on credit. 4. Borrowed from the bank. 5. Paid on account for supplies purchased earlier on credit. 6. Paid secretary’s salary for August of . 7. Performed accounting services for clients who paid cash upon completion of the service in the total amount of . 8. Used of the supplies on hand. 9. Performed accounting services for clients on credit in the total amount of . 10. Purchased in supplies for cash. 11. Collected cash from clients for whom services were performed on credit. 12. Paid dividend to stockholders. Required: 1. Record the effects of the transactions listed above on the accounting equation. Use the format given in the problem, starting with the totals at July 31, 2013. Check Figure: Check Figure: 2. Prepare the trial balance at August 31, 2013. From <http://ng.cengage.com/static/nbreader/ui/apps/nbreader/print_preview/print_preview.html>
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