2-1 Objective Demos Flashcards
Identify the impact of the following event on the components of the accounting equation:
“Owners invested $25000 in Consult Inc. in exchange for shares of common stock.”
Assets: Cash (decrease of $25000)
Liabilities: None
Stockholder’s Equity: Common Stock (increase of $25000)
Identify the impact of the following event on the components of the accounting equation:
“Consult Inc. paid $1000 in attorney fees to help launch the business”
Assets: Cash (decrease of $1000)
Liabilities: None
Stockholder’s Equity: Expense (increase of $1000), Net Income (decrease of $1000)
Identify the impact of the following event on the components of the accounting equation:
“Consult Inc. borrowed $10000 from a bank by signing a note payable.”
Assets: Cash (increase of $10000)
Liabilities: Note Payable (increase of $10000)
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Consult Inc. purchased $4000 of supplies on account from Office Gear Inc.”
Assets: Supplies (increase of $4000)
Liabilities: Accounts Payable (increase of $4000)
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Consult Inc. performed consulting services for $2000 cash.”
Assets: Cash (increase of $2000)
Liabilities: None
Stockholder’s Equity: Service Revenue (increase of $2000), Net Income (increase of $2000)
Identify the impact of the following event on the components of the accounting equation:
“Consult Inc. declared a cash dividend of $500 payable to shareholders.”
Assets: None
Liabilities: Dividends Payable (increase of $500)
Stockholder’s Equity: Dividends (decrease of $500)
Identify the impact of the following event on the components of the accounting equation:
“Consult Inc. paid $3000 on account to Office Gear Inc.”
Assets: Cash (decrease of $3000)
Liabilities: Accounts Payable (decrease of $3000)
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Tax Services Inc. provided $1000 of tax services on account this month.”
Assets: Accounts Receivable (increase by $1000)
Liabilities: None
Stockholder’s Equity: Revenue (increase by $1000), Net Income (increase by $1000)
Identify the impact of the following event on the components of the accounting equation:
“Eagle Brand Inc. incurred utility costs for this month of $850, payable next month.”
Assets: None
Liabilities: Accounts Payable (increase of $850)
Stockholder’s Equity: Utilities Expense (increase of $850), Net Income (decrease of $850)
Identify the impact of the following event on the components of the accounting equation:
“Texako Inc. paid $50000 in dividends this moth that were declared last month.”
Assets: Cash (decrease of $50000)
Liabilities: Dividends Payable (decrease of $50000)
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Post Corp purchased equipment at a cost of $25000 this month by issuing a note payable.”
Assets: Equipment (increase of $25000)
Liabilities: Accounts Payable (increase of $25000)
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Atlanta Inc. paid $2000 cash for one year of insurance coverage.”
Assets: Cash (decrease of $2000), Prepaid Insurance (increase of $2000)
Liabilities: None
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Quality Products Inc. paid $8000 cash for supplies to be used later this month.”
Assets: Cash (decrease of $8000), Supplies (increase of $8000)
Liabilities: None
Stockholder’s Equity: None
Identify the impact of the following event on the components of the accounting equation:
“Fast Food Inc. paid $3000 cash for salaries this month.”
Assets: Cash (decrease of $3000)
Liabilities: None
Stockholder’s Equity: Salaries Expense (increase of $3000), Net Income (decrease of $3000)
