Section 3.2 Exercise #1, p (t), p. 28 (w)

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Presentation transcript:

Section 3.2 Exercise #1, p. 69-70 (t), p. 28 (w)

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3 000 Trans. 1 Trans. 2 Trans. 3 Trans. 4 Trans. 5 Trans. 6 Trans. 7 New Balances

Transaction 1: Stationery and supplies are purchased from Home Supply on credit for $175. They will be paid for within 30 days. Supplies increase $175 Accounts Payable- Home Supply increase $175

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3000 Trans. 1 +175 +175 Trans. 2 Trans. 3 Trans. 4 Trans. 5 Trans. 6 Trans. 7 New Balances

Transaction 2: A new desk for the office is purchased for $450 cash. Cash decreases $450 Office Furniture increases $450

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 Trans. 4 Trans. 5 Trans. 6 Trans. 7 New Balances

Transaction 3: E. Kerluck, a debtor, pays her debt in full. Accounts Receivable decreases $150 Cash increases $150

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 +150 -150 Trans. 4 Trans. 5 Trans. 6 Trans. 7 New Balances

Transaction 4: A $300 service is performed for a customer, who pays immediately in cash. Cash increases $300 S. Kostiuk, Capital increases $300

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 +150 -150 Trans. 4 +300 Trans. 5 Trans. 6 Trans. 7 New Balances

Transaction 5: A used truck costing $6 500 is purchased from Pine Motors. A down payment of $500 is made. It is agreed that the remainder of the purchase price will be paid within three months Cash decreases $500 Truck increases $6 500 Accounts Payable increases $6 000

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Automobile ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Automobile Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3 000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 +150 -150 Trans. 4 +300 Trans. 5 -500 +6 500 +6 000 Trans. 6 Trans. 7 New Balances

Transaction 6: Home Supply, a creditor, is paid $700. Cash decreases $700 Accounts Payable decreases $700

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Automobile ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Automobile Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2 050 150 600 1 200 1000 3 000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 +150 -150 Trans. 4 +300 Trans. 5 -500 +6 500 +6 000 Trans. 6 -700 -700 Trans. 7 New Balances

Transaction 7: The owner, Sheila Kostiuk, withdraws $200 from the business for her own use. Cash decreases $200 S. Kostiuk, Capital decreases $200

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Automobile Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2050 150 600 1 200 1000 3 000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 +150 -150 Trans. 4 +300 +300 Trans. 5 -500 +6 500 +6000 Trans. 6 -700 -700 Trans. 7 -200 New Balances

ASSETS LIABILITIES O.E. Cash Accounts Receivable Supplies Office Furniture Automobile Accounts Payable S. Kostiuk, Capital E. Kerluck Home Supply Pine Motors Beg. Balances 2050 150 600 1 200 1000 3000 Trans. 1 +175 +175 Trans. 2 -450 +450 Trans. 3 +150 -150 Trans. 4 +300 +300 Trans. 5 -500 +6 500 +6 000 Trans. 6 -700 -700 Trans. 7 -200 New Balances 650 775 1650 6 500 475 6 000 3100 Total liabilities = 6 475 Total assets = 9 575

Homework: Complete Ex. 4 p. 60 (t), p.26 (w) Section 3.2, Ex. 2,3 p.70, 71 (t), p. 29-31 (w)