Work Together – page 12
Determining how transactions change an accounting equation
4. For each transaction, place a plus (+) in the appropriate column if the classification is increased.
Place a minus (-) in the appropriate column if the classification is decreased.
Transaction #
1 Bought supplies on
account
2. Received cash from
owner as an investment
3. Paid cash for
insurance
4. Paid cash on account
Assets
=
+
+
+
Liabilities
+
Owner’s Equity
+
+
-
-
-
On Your Own – page 12
5. For each transaction, place a plus (+) in the appropriate column if the classification is increased.
Place a minus (-) in the appropriate column if the classification is decreased.
Transaction #
1 Received cash from
owner as investment
2. Paid cash for
supplies
3. Paid cash for
insurance
4. Bought supplies on
account
5. Paid cash on account
Assets
=
Liabilities
+
+
+
Owner’s Equity
+
-
+
-
+
+
-
5. Preparing a Balance Sheet – Page 14
Encore Music
Balance Sheet
August 11, 2011
Assets
Cash
Supplies
Prepaid Insurance
Total Assets
5863.00
4297.00
1200.00
11,360.00
Liabilities
A/P-Ling Music Supplies
Owner’s Equity
Barbara Trevino, Capital
Total Liab. and Owner’s Eq.
1360.00
10000.00
11,360.00
Using Formulas in a Table in Word
Examples: Sum numbers in a table by using positional arguments
IMPORTANT To avoid an error while summing in a table by using positional arguments, type a zero (0) in any
empty cell that will be included in the calculation.
1.
Select the table cell where you want your result. If the cell is not empty, delete its contents.
2.
On the Table Tools Layout tab, in the Data group, click Formula.
3.
In the Formula dialog box, do one of the following:
TO ADD THE
NUMBERS…
TYPE THIS IN THE FORMULA
BOX
Above the cell
=SUM(ABOVE)
4.
Click OK.
Work Together – Page 15
Preparing a balance sheet from information in an accounting equation
5. Using the October 31 balances in the accounting equation, prepare a balance sheet for the Hess
Company.
Hess Company
Balance Sheet
October 31, 2011
Assets
Cash
Supplies
Prepaid Insurance
Total Assets
2400.00
300.00
600.00
3,300.00
Liabilities
A/P-Hulett Company
Owner’s Equity
Jim Hess, Capital
Total Liab. and Owner’s Eq.
250.00
3,050.00
3,300.00
UPDATE THE RESULT OF SPECIFIC FORMULAS
1.
Select the formulas that you want to update. You can select multiple formulas by holding down the CTRL key while
you make selections.
2.
Do one of the following:
Right-click the formula, then click Update field.
Press F9.
UPDATE ALL THE FORMULA RESULTS IN A TABLE
Select the table that contains formula results that you want to update, and then press F9.
UPDATE ALL THE FORMULAS IN A DOCUMENT
IMPORTANT
This procedure updates all the field codes in a document, not just formulas.
1.
Press CTRL+A.
2.
Press F9.
On Your Own page 15
6. Using the July 31 balances in the accounting equation, prepare a balance sheet for the Goldstein
Company.
Goldstein Company
Balance Sheet
July 31, 2011
Assets
Cash
Supplies
Prepaid Insurance
Total Assets
2500.00
800.00
1200.00
4,500.00
Liabilities
A/P-Heino Company
Owner’s Equity
Mary Goldstein, Capital
Total Liab. and Owner’s Eq.
500.00
4000.00
4,500.00
1-1 Page 17
Completing the Accounting equation
Assets
90,000
98,000
3,000
108,000
19,000
25,000
=
Liabilities
49,000
68,000
1,000
60,000
4,000
13,000
113,000
4,000
86,000
12,000
48,000
47,000
5,000
24,000
29,000
38,000
125,000
11,000
+
Owner’s Equity
41,000
30,000
2,000
11,000
12,000
49,000
2,000
7,000
14,000
13,000
21,000
69,000
1,000
6,000
3,000
1-2 Application Problem - page 18
Determining how transactions change an accounting equation
Assets
Trans. No.
Cash
1. The
owner
invested
$3,000
cash in the
business.
New
Balance
2. Paid
1,200 for
insurance
New
Balance
3. Bought
supplies on
account
from Seiler
Supply
Company,
$800.00
New
Balance
4. Bought
supplies on
account
from Miles
Company,
$500.00
New
Balance
5. Paid
cash on
account to
Seiler
Supply
Company,
$400.00
+3,000
3,000
Accts. Pay.
– Seiler
Supply
0
0
0
0
3,000
0
0
3,000
0
3,000
+1,200
0
1,200
800
+800
1,200
800
+500
1,800
-400
+ Owner’s
Equity
Accts. Pay
Ellie Von
– Miles
Spreecken,
Company
Capital
+3,000
Prepaid
Insurance
+800
1,800
Liabilities
Supplies
-1,200
1,800
=
1,300
+500
1,200
800
-400
500
3,000
New
1,400
Balance
6.
+1,000
Received
cash from
owner as
an
investment,
$1,000.00
New
2,400
Balance
1,300
1,200
400
500
3,000
+1,000
1,300
1,200
400
500
4,000
1-2 Application Problem page 18
Determining how transactions change an accounting equation
Assets
Trans. No.
Cash
1.
Received
cash from
owner as
an
investment,
$2000.00
New
Balance
2. Paid
cash for
insurance
New
Balance
3. Bought
supplies on
account
from
Swan’s
Supply
Company,
$100.00
New
Balance
4. Bought
supplies on
account
fromYork
Company,
$500.00
New
Balance
5. Paid
cash on
account to
Swan’s
Supply
Company,
+2,000
2,000
Supplies
Prepaid
Insurance
0
0
Accts. Pay.
– Swan’s
Supply
Company
0
0
2,000
0
600
0
0
2,000
100
0
2,000
+100
600
100
+500
1,400
-100
+ Owner’s
Equity
Accts. Pay
Frank
– York
Mori,
Company
Capital
+600
+100
1,400
Liabilities
+2,000
-600
1,400
=
600
+500
600
100
-100
500
2,000
$100.00
New
Balance
6. Paid
cash on
account to
York
Company,
$300.00
New
Balance
7. Paid
cash for
supplies,
$500
New
Balance
8.
Received
cash from
owner as
an
investment,
$500.00
New
Balance
1,300
600
600
0
-300
500
-300
1,000
600
-500
+500
500
1,100
600
0
200
2,000
600
0
200
2,000
+500
1,000
2,000
+500
1,100
600
0
200
2,500
1-4 Application Problem – page 19
Determining where items are listed on a balance sheet
1
Items
1. Cash
2. Michelle Sullivan, Capital
3. Supplies
4. Prepaid Insurance
5. Accounts Payable – Action
Laundry
6. Anything owned
7. Any amount owed
8. Owner’s capital account
2
3
Balance Sheet
Left Side
Asset
Right Side
Owner’s Equity
Asset
Asset
Liability
Asset
Liability
Owner’s Equity
1-5. Application Problem - page 19
Preparing a balance sheet from information in an accounting equation
Steffens Company
Balance Sheet
September 30, 2011
Assets
Cash
Supplies
Prepaid Insurance
Total Assets
1,200.00
150.00
300.00
1,650.00
Liabilities
A/P-Morton Company
Owner’s Equity
Steven Steffens, Capital
Total Liab. and Owner’s Eq.
250.00
0
1,400.00
1,650.00
Cases for Critical Thinking – page 21
1. Not acceptable. Only the expenses related to the business use of the car can be allocated to the
business.
2.
Quick Clean Laundry
Balance Sheet
First Day of Business
Assets
Cash
Supplies
3,500.00
950.00
Prepaid Insurance
Total Assets
1,200.00
5,650.00
Susan Whiteford’s equity is $3,400.
Assets = Liabilities + Owner’s Equity
Liabilities
A/P-Smith Office Supplies
A/P – Super Supplies
Company
Susan Whiteford, Capital
Total Liab. and Owner’s Eq.
750.00
1,500.00
3,400.00
5,650.00