Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 13

Analyzing and Journalizing Transactions
Lyons, Inc., provides consulting services. few of the company's business transactions occurring during June are described below:
1.n June 1,the company billed customers $5,000 on account for consulting services rendered.ustomers are required to make full payment within 30days.
2.n June 3, the company purchased office supplies costing $3,200, paying $800 cash and charging the remainder on the company's 30-day account at Office Warehouse.he supplies are expected to last several months.
3.n June 5, the company returned to Office Warehouse $100 of supplies that were not needed.he return of these supplies reduced by$100 the amount owed to Office Warehouse.
4.n June 17, the company issued an additional 1,000 shares of capital stock at $5pershare.he cash raised will be used to purchase new equipment in September.
5.n June 22, the company received $1 ,200 cash from customers it had billed on June 1.
6.n June 29, the company paid its outstanding account payable to Office Warehouse.
7.n June 30, a cash dividend totaling $1,800 was declared and paid to the company's stockholders.
Instructions
a.repare an analysis of each of the above transactions.ransaction 1serves as an example of the form of analysis to be used.
1. (a) The asset Accounts Receivable was increased.ncreases in assets are recorded by debits.ebit Accounts Receivable $5,000.
(b) Revenue has been earned.evenue increases owners' equity.ncreases in owners' equity are recorded by credits.redit Consulting Revenue $5,000.
b.repare journal entries, including explanations, for the above transactions.
c.ow does the r ealization principle influence the manner in which the June I billings to customers are recorded in the accounting records
d.ow does the match ing principle influence the manner in which the June 3 purchase of supplies is recorded in the accounting records