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

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Presentation on theme: "Section 3.2 Exercise #1, p (t), p. 28 (w)"— Presentation transcript:

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

2 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

3 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

4 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

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

6 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

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

8 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

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

10 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

11 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

12 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

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

14 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

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

16 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

17 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

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

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