Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 50

The Accounting Cycle: Journalizing, Posting, and Preparing a Trail Balance
Dr. Cravati, DMD., opened a dental clinic on August 1,2011. The business transactions for August are shown below:
A partial list of account titles used by Dr. Cravati includes:
Instructions
a. Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of August. Organize your answer in tabular form, using the column headings shown below. Use I for increase, D for decrease, and NE for no effect. The August 1transaction is provided for you:

b , Prepare-journal entries (including explanations) for each transaction.
c. Post each transaction to the appropriate ledger accounts (use the T account format as illustrated in Exhibit 3-8 on page 108).
d. Prepare a trial balance dated August 31 , 2011.
e. Using figures from the trial balance prepared in part d , compute total assets, total liabilities, and owners' equity. Did August appear to be a profitable month?