Questions from College Accounting

Q: When an owner withdraws cash or goods from the business, why

When an owner withdraws cash or goods from the business, why is this considered an increase to the Drawing account and not an increase to the Wages Expense account?

Q: Define chart of accounts and identify the categories of accounts.

Define chart of accounts and identify the categories of accounts.

Q: Describe the transactions that are recorded in the following equation:

Describe the transactions that are recorded in the following equation:

Q: Describe a business transaction that will do the following: a

Describe a business transaction that will do the following: a. Increase an asset and increase a liability b. Decrease an asset and decrease a liability c. Decrease an asset and increase an expense d....

Q: Complete the following equations: a. Assets of $40

Complete the following equations: a. Assets of $40,000 = Liabilities of $17,200 + Owner’s Equity of $_____ b. Assets of $_____ – Liabilities of $18,000 = Owner’s Equity of $22,000 c. Assets of $27,000...

Q: Determine the following amounts: a. The amount of the

Determine the following amounts: a. The amount of the liabilities of a business that has $60,800 in assets and in which the owner has $34,500 equity. b. The equity of the owner of a tour bus that cost...

Q: Dr. L. M. Patton is an ophthalmologist. As

Dr. L. M. Patton is an ophthalmologist. As of December 31, Dr. Patton owned the following property that related to his professional practice, Patton Eye Clinic: Cash, $2,995 Professional Equipment, $6...

Q: During December of this year, G. Elden established Ginny’s Gym

During December of this year, G. Elden established Ginny’s Gym. The following asset, liability, and owner’s equity accounts are included in the chart of accounts: Cash Exercise Equipment Store Equipme...

Q: During February of this year, H. Rose established Rose Shoe

During February of this year, H. Rose established Rose Shoe Hospital. The following asset, liability, and owner’s equity accounts are included in the chart of accounts: Cash Shop Equipment Store Equip...

Q: Label each of the following accounts as asset (A), liability

Label each of the following accounts as asset (A), liability (L), owner’s equity (OE), revenue (R), or expense (E). a. Supplies b. Professional Fees c. Prepaid Insurance d. M. Jones, Drawing e. Accoun...