Question

ACC 201 Exam Il pati - Protected View - Soved yout References Mailings Review View Help the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is ofiset by a decrease in the same element.) Increase = I Decrease=D Not Affected NA 1) Belvedere Company recognized $2,500 of depreciation expense on a delivery van. Liabilities Stk. Equity Revenues Stent of Cash Expenses Net Income Flows 2) The Fisher Company paid $28,000 to improve the quality of a manufacturing machine. Stent of Cash Liabilities Stk. Equity Revenues Expenses Net Income Flows 3) The Greer Company purchased equipment on account on January 1, Year 1. Stmt of Cash Assets Liabilities Stk. Equity Revenues Expenses Net Income Flows 4) On December 31. Year 1. Sparkes Co estimated it had $12,000 of uncollectible accounts related to credit sales it made during the year. Sparkes, which uses the allowance method, made the necessary adjustment to record this estimate CUM * ** Prisc Prisc meer

Answer 1

Ans 1 Assets D Liabilities Stk Equity Revenue Expense Net Income Stmt of Cash Flows NA D NA 1 I NA Account Title Debit Credit Type of Account Depreciation $2500 Expense Account Accumulated Depreciation - VAN $2500 Contra Asset Account Ans 2 Assets Liabilities Stk Equity Revenue Expense Net Income Stmt of Cash Flows | ΝΑΙ ΝΑΙ ΝΑΙ ΝΑΙ ΝΑΙ ΝΑ I D Account Title Machine Cash Debit Credit Type of Account $28000 Asset Account $28000 Asset Account Ans 3 Assets i Liabilities Stk Equity Revenue Expense Net Income Stmt of Cash Flows i NA NA NA NA NA Account Title Equipment Account Payable Debit Credit Type of Account AAA Asset Account AAA Liability Account Ans 4 Assets D Liabilities Stk Equity Revenue Expense Net Income Stmt of Cash Flows NA DI NA D NA Account Title Bad Debt Expense Allowance for Uncollectible Act Debit Credit Type of Account $12000 Expense Account $12000 Contra Asset Account