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Published byArron Fields Modified over 9 years ago
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Chapter 1 Exercises Accounting and the Business Environment
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Business Transactions
In-Class Exercise (Form groups and work exercise): Exercise No. Page E Affect of Transactions on the Accounting Equation (Set up equation format, as reflected on the next chart, to complete the exercise)
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Business Transactions
Exercise Page E Affect of Transactions on the Accounting Equation (Also prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet)
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Business Transactions Record transactions on the equation form.
Caren Smith opened a medical practice. During July, the first month of operation, the business, titled Caren Smith, M.D., experienced the following events: July 6. Smith contributed $55,000 in the business by opening a bank account in the name of C. Smith, M.D. The corporation issued common stock to Smith. 9. Paid $46,000 cash for land Purchased medical supplies for $1,800 on account Officially opened for business. 20. Paid cash expenses: employees salaries, $1,600; office rent, $900; utilities, $ Earned service revenue for the month, $8,000, receiving cash Paid $1,100 on account. Record transactions on the equation form.
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Business Transactions
$61,100 $61,100
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Business Transactions
Income Statement
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Business Transactions
$ 8,000
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Business Transactions Statement of Retained Earnings
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Business Transactions
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Business Transactions
Balance Sheet
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Business Transactions
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Business Transactions
End of Exercise
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