Question

TABLE 25.4 New Town Finance Department: Debits and Credits res of Wh trar beg New Town Finance Department 2-Jan received $10,000 in education revenues from state Cash State Education Revenues, education $10,000 $10,000 5-Jan spent $5,000 in cash on supplies 5,000 Expenses, Supplies Cash 5,000 8-Jan received $3,000 in property tax revenues from private company Tra 3,000 Cash - Property tax, commercial Revenues, commercial ,000 bas trat 14-Jan paid salaries of employees Salaries expense Cash 8,000 ,000 Tra bas local sports store. The transaction total was $12,453

The Seaside Humane Society has performed the following transactions. Summarize the transactions using the accounting equation.Transaction A: A generous cash donation of $25,000 was received.Transaction B: The Society purchased a new piece of medical equipment (an asset) for $10,000 and will pay for it in 90 days, creating a liability.

Transaction C: Payroll was distributed, resulting in a decrease of cash in the amount of $2,000.What are the balance sheet totals after these transactions, assuming the Society had beginning balances of zero?2. The Little League Organization performed the following transactions. Summarize the transactions using the accounting equation.Transaction A: Registration for the upcoming baseball season generated $35,600 in regis-tration fees. All fees are paid in cash.

Transaction B: The League purchased new baseballs and uniforms on credit from the local sports store. The transaction total was $12,453.

Transaction C: Landscaping services in the amount of $5,632 were purchased with cash to prepare the fields for play.What are the balance sheet totals after these transactions, assuming the League had beginning balances of zero?3. The local homeless shelter had the following transactions. Summarize the transactions using the accounting equation.

Transaction A: Utility bills were paid using cash and totaled $1,345.

Transaction B: The city provides a subsidy of $1 for each breakfast provided by the shelter. A bill was generated and delivered to the city for 6,000 eligible meals.

Transaction C: Volunteers and staff will be painting the inside of the shelter this weekend. Supplies were purchased on credit from the local hardware store, and the total cost was $1,500

Transaction D: Cash was used to pay the credit debt on the paint and supplies.What are the totals in the accounting equation after these transactions?What are the ending balances on the balance sheet if the shelter had the following beginning balances: assets = $20,000; liabilities = $5,000; net assets = $15,000?

Answer 1

The Seaside Humane Society

		Debit	Credit	Notes
A.	Cash	25,000		Asset
	Donation		25,000	Capital
B.	Equipment	10,000		Asset
	Payable for Equipment		10,000	Liabilities
C.	Salaries expense	2,000		Capital
	Cash		2,000	Asset

Accounting Equation, Assets = Liabilities + Capital

Assets	33,000
Liabilities	10,000
Capital	23,000

Little League Organization

		Debit	Credit	Notes
A.	Cash	35,600		Asset
	Registration fee		35,600	Capital
B.	Baseball & uniform expense	12,453		Capital
	Payables		12,453	Liabilities
C.	Landscaping services	2,000		Capital
	Cash		2,000	Asset

Accounting Equation, Assets = Liabilities + Capital

Assets	33,600
Liabilities	12,453
Capital	21,147

The local homeless shelter

		Debit	Credit	Notes
A.	Utility billls	1,345		Capital
	Cash		1,345	Asset
B.	Subsidy receivable	6,000		Asset
	Subsidy income		6,000	Capital
C.	Supplies expense	1,500		Capital
	Payable for supplies		1,500	Liabilities

Accounting Equation, Assets = Liabilities + Capital

	Beginning Bal	Current year transaction	Closing Bal
Assets	20,000	4,655	24,655
Liabilities	5,000	1,500	6,500
Capital	15,000	3,155	18,155