1. Principles of Accounting
Asst.Prof.Dr. Panchat Akarak
School of Accounting
Chaingrai Rajabhat University
Accounting I

2. Exercise 1 -Demonstration Problem -Matching

3. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
1.Martin transferred cash from his family’s checking account to martin Service Company’s account.

4. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
1.Martin transferred cash from his family’s checking account to martin Service Company’s account. +

5. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
2. Purchased land for cash.

6. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
2. Purchased land for cash. - +

7. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
3. Performed services for a cash customer.

8. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
3. Performed services for a cash customer. +

9. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
4. Paid rent for month

10. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
4. Paid rent for month -

11. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
5. Purchased equipment on account.

12. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
5. Purchased equipment on account. +

13. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
6. Performed services for a charge customer.

14. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
6. Performed services for a charge customer. +

15. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
7. Paid for equipment purchased earlier on account.

16. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
7. Paid for equipment purchased earlier on account. -

17. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
8. Received payment from a charge customer.

18. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
8. Received payment from a charge customer. + -

19. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
9. Sold equipment at cost for cash at no gain or loss.

20. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
9. Sold equipment at cost for cash at no gain or loss. + -

21. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
10. Martin withdrew cash for family medical expenses.

22. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
10. Martin withdrew cash for family medical expenses. -

23. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
11. Returned defective equipment (Purchased earlier for cash).

24. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
11. Returned defective equipment (Purchased earlier for cash). + -

25. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
12. Made cash payment for monthly wages.

26. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
12. Made cash payment for monthly wages. -

27. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
13. Paid utilities for the period.

28. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
13. Paid utilities for the period. -

29. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
14. Martin withdrew cash in exact amount he would have earned elsewhere as a salaried employee.

30. Demonstration Problem
Cash
+Accts.Rec.
+Equipment
+Land
=Accts.Pay
+ L. Marin Capital
14. Martin withdrew cash in exact amount he would have earned elsewhere as a salaried employee. -

31. Matching A Single proprietorship B Liabilities c Accounting equation D
Transactions E
Merchandising Company F
Assets G
Owner’s equity H
Corporation I
Manufacturing Company J
Solvency

32. Matching K Service Companies L Profitability M Net loss N
Salary expense O
Net income P
Withdrawals

33. Matching 1
An organization owned by stockholders and managed by officers who generally are people other than the owners 2
This type of business acquires goods and sells them in the same form to customers. 3
Creditor’s equity or claims on assets. 4
Ability to generate earnings. 5
Land, buildings, cash, and other resources owned by the business 6
This type of business acquires materials and converts them into products to sell to other companies or final customers.

34. Matching 7
Exchanges of goods and services which are objective and which occur at an agreed-upon price. 8
An organization owned by one individual who is solely responsible for all debts of the business. 9
The resulting figure when expenses exceed revenues. 10
Cash the owner takes out of the business for his/her personal use in lieu of a salary. 11
Ability to pay debts as they become due. 12
Owner’s Equity = Assets - Liabilities is on form of this.

35. SOLUTIONS
Matching 1 H 7 D 2 E 8 A 3 B 9 M 4 L 10 P 5 F 11 J 6 i 12 c