CHAPTER sued a short-term note payable for the balance of the purehase price. 4
ID: 2608981 • Letter: C
Question
CHAPTER sued a short-term note payable for the balance of the purehase price. 4 In the space below, indicate the effect of each of the following transactions on various balance sheet items of the Billiard Den. Indicate the new account balanees after the transaction of July 3 and each subsequent transaction. (The effects of the July 1 trans- action are already filled in to provide you 10 Purchased 10 pool tables for $1,000 each, paying $6,000 cash and agreeing to pay the balanee due in 30 days 14 Sold one pool table to a friend for $1,000. The friend paid $500 eash to the Billiard Den and promised to pay the balance within 30 days. with an example.) Robert Neal began the business by de- positing $20,000 eash in a bank account 20 Paid $2,000 of the amount owed on the 24 Collected $200 from the friend who had 30 Purchased one used pool table from July 1 pool tables. bought the pool table another pool hall, paying $600 cash. in the name of the business. 3 Purchased an existing pool hall at a price of $21,000 for the land and $30,000 for the building. Neal paid the former owner $10,000 in cash and is- Owners Equity Assets Notes Accounts R. Neal Cash Receivable Land Building Tables Payable Payable Capital +$20,000 Pool July , 0,000 Balances 14 Balances Balances 24 Balances BalancesExplanation / Answer
30000
30000
30000
300
30000
$300
Assets = Liabilities + Owner's equity Cash Accounts receivables Land Buildings Pool Tables = Notes payable Accounts payable + R Neal, capital July 1 20000 20000 3 (10000) 21000 30000 = 41000 Balance 10000 21000 30000 = 41000 20000 10 (6000) 10000 = 4000 Balance 4000 2100030000
10000 = 41000 4000 20000 14 500 500 (1000) = Balance 4500 500 2100030000
9000 = 41000 4000 20000 20 (2000) = (2000) Balance 2500 500 2100030000
9000 = 41000 2000 20000 24 200 (200) = Balance 2700300
2100030000
9000 = 41000 2000 20000 30 (600) 600 = Balance $2100$300
$21000 $30000 $9600 = $41000 $2000 $20000