Chapter 3 Exersises

Exercise 3-1 Types of Events, p. 133

1. E

2. E

3. NR

4. E

5. I

6. NR

7. E

8. I

Exercise 3-3 The Effect of Transactions on the Accounting Equation, p. 133

1. g.

2. b.

3. f.

4. d.

5. c.

6. a.

7. b.

8. e.

Problem 3-2 Transaction Analysis and Financial Statements, p. 138

1. Prepare a table to summarize the preceding transactions as they affect the accounting equation.

Just Rolling Along Inc.

Transactions for the month of May 2012

  |   | Assets |   |   |   |   | | Liabilities |   | Stockholders' Equity |

Cash | | Accounts Receivable | | Equipment | | Supplies | | Accounts Payable | | Capital Stock | | Retained Earnings |

$ 18,000 | | | | | | | | | | $18,000 | | |

  | | | | $ 3,000 | | | | $ 3,000 | |   | | |

$ 18,000 | | | | $ 3,000 | | | | $ 3,000 | | $18,000 | | |

$ (15) | | | |   | | | |   | |   | | $ (15) |

$ 17,985 | | | | $ 3,000 | | | | $ 3,000 | | $18,000 | | $ (15) |

$ (4,400) | | | | $ 4,400 | | | |   | |   | |   |

$ 13,585 | | | | $ 7,400 | | | | $ 3,000 | | $18,000 | | $ (15) |

  | | | |   | | $ 100 | | $ 100 | |   | |   |

$ 13,585 | | | | $ 7,400 | | $ 100 | | $ 3,100 | | $18,000 | | $ (15) |

$ (125) | | | |   | |   | |   | |   | | $ (125) |

$ 13,460 | | | | $ 7,400 | | $ 100 | | $ 3,100 | | $1,800 | | $ (140) |

$ 1,800 | | | |   | |   | |   | |   | | $ 1,800 |

$ 15,260 | | | | $ 7,400 | | $ 100 | | $ 3,100 | | $18,000 | | $ 1,660 |

  | | $ 1,200 | |   | |   | |   | |   | | $ 1,200 |

$ 15,260 | | $ 1,200 | | $ 7,400 | | $ 100 | | $...