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Download PDF by Jerry J. Weygandt: Accounting Principles, 10th Edition

By Jerry J. Weygandt

ISBN-10: 0470534796

ISBN-13: 9780470534793

ISBN-10: 1118009290

ISBN-13: 9781118009291

Weygandt's Accounting ideas introduces not easy accounting strategies with examples which are primary to accountants. the hot version has been up-to-date with the most recent IFRS/IASB criteria. extra insurance is integrated on foreign exchange translation and LCM. extra discussions specialise in chance administration because of the monetary concern. The examples additionally emphasize present examples that allows you to support accountants make the relationship to their daily lives.

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Example text

Utilities Exp. 9/ch05 Using the Accounting Equation 19 The two sides of the equation now balance at $19,600. Three lines in the analysis indicate the different types of expenses that have been incurred. Transaction (8). Payment of Accounts Payable. Softbyte pays its $250 Daily News bill in cash. The company previously [in Transaction (5)] recorded the bill as an increase in Accounts Payable and a decrease in owner’s equity. Basic Analysis This cash payment “on account” decreases the asset Cash by $250 and also decreases the liability Accounts Payable by $250.

The owner withdrew $1,000 cash for personal use. Tabular Analysis action plan ✔ Analyze the effects of each transaction on the accounting equation. ✔ Use appropriate category names (not descriptions). ✔ Keep the accounting equation in balance. Solution Assets 5 Liabilities 1 Owner’s Equity Accounts Owner’s Owner’s Cash 1 Equipment 5 Payable 1 Capital 2 Drawings 1 Revenues 2 Expenses 1. 1$25,000 1$25,000 2. 1$7,000 1$7,000 3. 18,000 1$8,000 4. 2850 2$850 5. 21,000 2$1,000 $ 31,150 1 $7,000 5 $7,000 1 $25,000 2 $1,000 1 $8,000 2 $850 ⎧ ⎪ ⎪ ⎪ ⎪ ⎪ ⎨ ⎪ ⎪ ⎪ ⎪ ⎪ ⎩ ⎧ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎨ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎩ Apago PDF Enhancer $38,150 $38,150 Related exercise material: BE1-6, BE1-7, BE1-8, BE1-9, E1-6, E1-7, E1-8, E1-10, E1-11, and Do it!

External transactions involve economic events between the company and some outside enterprise. For example, Campus Pizza’s purchase of cooking equipment from a supplier, payment of monthly rent to the landlord, and sale of pizzas to customers are external transactions. Internal transactions are economic events that occur entirely within one company. The use of cooking and cleaning supplies are internal transactions for Campus Pizza. indd Page 15 11/26/10 2:11:07 PM user-s146 /Users/user-s146/Desktop/Merry_X-Mas/New Using the Accounting Equation 15 Companies carry on many activities that do not represent business transactions.

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Accounting Principles, 10th Edition by Jerry J. Weygandt

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