Accounting in Action

Solution

Accounting is the financial information system that provides these insights.

Accounting consists of three basic activities

  1. Identifies
  2. Records
  3. Communicates

 

Source: Accounting Principles by Weygandt, Kimmel, & Kieso

Problems: Accounting in Action

Problem-1: Accounting in Action

On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were completed during the month: Invested $15,000 cash to start the agency Paid $600 cash for April office...

Problem-2: Accounting in Action

Judi Salem opened a law office on July 1, 2018. On July 31, the balance sheet showed Cash $5,000, Account Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200 and...

Problem-3: Accounting in Action

On June 1, Cindy Godfrey started Divine Designs Co., a company that provides cash opportunities by investing $12000 cash in the business. Following are the assets and liabilities of the...

Problem-4: Accounting in Action

Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2018. The following transactions occurred during the month of May Trixie invested $7,000 cash in the business. Paid...

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