Analyzing the effects of transactions

Analyzing the Effect of Transactions

Student Name

ACC/290

Date

 Jon Mohr

Analyzing the Effect of Transactions

Please find the selected transactions for Thyme Advertising Company, and enter the descriptions of the effect of each transaction on the specific asset, liability, and/or stockholder's equity account below in order to earn credit for this assignment. Please note that I have entered the descriptions of the effect for an example one so you can see what to do. By the way, you do not need to have any particular word count but you do need to select 6 answers for each event and I strongly recommend that you have my Cheat Sheet handy when you make your selection. In addition you do not need to enter any amounts.

· Example – Paid an employee (6 possible points)

· Stockholders Equity – the specific account is the Salary & Wages Expense which Increased with a Debit – see my Cheat Sheet and the Account Classification & Presentation table

· Asset – the specific account is Cash which Decreased with a Credit – see my Cheat Sheet & the Account Classification…

· Please note that each of the 9 transactions need to have 6 answers, the Specific Account, whether it would Increase or Decrease and whether it would be Debited or Credited.

· 1. Issued common stock to investors in exchange for cash received from investors.

· Asset what specific account should be Increased or decreased and should it be Debited of Credited?

· Stockholders’ Equity what specific account should be either debited or credited in order to increase or decrease it?

· 2. Paid monthly rent.

· Asset - what specific account should be either debited or credited to increase or decrease it?

· Stockholders’ equity what specific Account should be debited or credited to increase or decrease it?

· 3. Received cash from customers when service was performed.

· Asset what specific account should be debited or credited to increase or decrease it?

· Stockholders’ Equity including what specific Account should be debited or credited to increase or decrease it?

· 4. Billed customers for services performed –

· Asset - what specific account should be debited or credited to increase it or decrease it?

· Stockholders’ Equity what specific Account should be debited or credited to increase or decrease it?

· 5. Paid dividend to stockholders.

· Asset what specific account should be debited or credited to increase or decrease it?

· Stockholders’ Equity including what specific Account should be debited or credited to increase or decrease it?

· 6. Incurred advertising expense on account.

· Stockholders’ Equity including what specific Account should be debited or credited to increase or decrease it?

· Liability account - including what specific Account should be debited or credited to increase or decrease it?

· 7. Received cash from customers billed in (4).

· Asset - what specific Account should be debited or credited to increase or decrease it?

· Asset - what specific Account should be debited or credited to increase or decrease it?

· 8. Purchased additional equipment for cash.

· Asset - what specific Account should be debited or credited to increase or decrease it?

· Asset - what specific Account should be debited or credited to increase or decrease it?

· 9. Purchased equipment on account. 

· Asset - what specific Account should be debited or credited to increase or decrease it?

· Liability account - what specific Account should be debited or credited to increase or decrease it?

· 54 possible points here equals 9 possible Syllabus points