Financial Accounting notes

Short Exercises (5 min.) S 2­1 Hooper’s payment was not an expense. Hooper acquired an asset, Equipment, because the computer is an economic resource of the business. (5 min.) S 2­2 a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500) b. $ 2,400 (5­10 min.) S 2­3 Cash (5 min.) S 2­4 Increased total assets: April 1 (Cash) April 1 (Medical supplies) April 3 (Cash, Accounts Receivable) (5­10 min.) S 2­5 a. Purchase of asset for cash Sale of asset for cash Collec...

Short Exercises (5 min.) S 2­1 Hooper’s payment was not an expense. Hooper acquired an asset, Equipment, because the computer is an economic resource of the business. (5 min.) S 2­2 a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500) b. $ 2,400 (5­10 min.) S 2­3 Cash (5 min.) S 2­4 Increased total assets: April 1 (Cash) April 1 (Medical supplies) April 3 (Cash, Accounts Receivable) (5­10 min.) S 2­5 a. Purchase of asset for cash Sale of asset for cash Collec...