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The following transactions occur for the Hamilton Manufacturers

The following transactions occur for the Hamilton Manufacturers.

(a) Provide services to customers on account for $4,500.

(b) Purchase equipment by signing a note with the bank for $10,000.

(c) Pay advertising of $1,500 for the current month.

Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

 

 

153. Using the notion that the accounting equation (Assets = Liabilities + Stockholders’ Equity) must remain in balance, indicate whether each of the following transactions is possible.

(a) Cash decreases; Accounts Payable decreases.

(b) Salaries Expense increases; Salaries Payable decreases.

(c) Accounts Receivable decreases; Service Revenue increases.

 

 

154. Suppose a company has the following balance sheet accounts:

 

Accounts

Balances

Land

$  9,000

Building

?

Salaries payable

3,700

Common stock

?

Accounts payable

2,600

Cash

5,300

Retained earnings

11,600

Supplies

3,200

Equipment

4,500

 

Calculate the missing amounts assuming the company has total assets of $40,000.

 

 

 

 

Jan 27 2020 View more View Less

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