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U2A2 Assignment

The document describes 10 business transactions involving balance sheet accounts that were either increased or decreased. For each transaction, the affected balance sheet accounts and the amount they changed by are listed. The transactions include receiving customer payments, an owner investment, paying salaries, purchasing assets on credit, buying a building with cash and a mortgage, selling equipment, repairs to a building, paying off a loan, billing a customer, and providing accounting services.

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4K views2 pages

U2A2 Assignment

The document describes 10 business transactions involving balance sheet accounts that were either increased or decreased. For each transaction, the affected balance sheet accounts and the amount they changed by are listed. The transactions include receiving customer payments, an owner investment, paying salaries, purchasing assets on credit, buying a building with cash and a mortgage, selling equipment, repairs to a building, paying off a loan, billing a customer, and providing accounting services.

Uploaded by

Hailey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BAF3M (2012): Financial Accounting Principles (2012), Grade 11

Unit 2 Activity 2 – Assessing Business Transactions

For each of the transactions listed below,


● determine the balance sheet accounts affected;
● indicate whether they are increased or decreased, and;
● state the value of the change.
Increase Decrease Amount
Equipment $2 000
Example: Purchased equipment for $2 000 cash. 
Cash $2 000
 
Bank
a) Received $1 800 payment from customers for $1 800
Account
previous purchases on credit.
Accounts
$1 800
Receivable
Cash $5 000
b) Owner invested $5 000 in the business.

c) Paid salaries totaling $2 000 to employees. Bank accounts $2 000


Accounts
$2 000
payable

d) Purchased $15 000 automobile on credit. Account $15 000


Payable

Equipment $15 000

e) Purchased new office building; paid $200 000 cash Assets $500 000
and took out mortgage for $300 000.
Bank account $200 000

Accounts $300 000


payable

f) Received $850 for the sale of an old piece of Bank $850


equipment. Accounts
Equipment $850

g) Paid $890 for repairs to building. Cash in Bank $890

Hint: When repairs occur, this does not increase the


value of the building but rather reduces owner’s Captial $890
equity.

h) Paid $8 000 toward amount owing for automobile Bank Account $8 000
purchased previously. Accounts
$8 000
payable

i) Performed accounting services for $4 500 and was Bank $4 500


paid cash. account

j) Sent a bill for $4 200 to a customer for accounting Accounts $4 200


services; to be paid later. receivable

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