152) Given the journal entries below, write an explanation of the event that created the transaction.
a. Cash 15,000
Common Shares 15,000
b. Automobile 20,000
Note Payable 15,000
Cash 5,000
c. Accounts Receivable 1,000
Service Revenue1,000
d. Dividends 500
Cash 500
e. Accounts Payable 1,500
Cash 1,500
f. Salary Expense 1,875
Cash 1,875
153) Following is a list of errors made during the posting process. Indicate the exact dollar impact each error would have on total assets, total liabilities, and shareholders' equity. Complete the chart below by using (+) to indicate overstated, (-) to indicate understated, and (0) to indicate no effect. Transaction (a) is completed as an example.
a. A $200 credit to the Accounts Payable account was posted as $2,000.
b. A $50 debit to Cash was never posted.
c. A $550 credit to the Revenue account was credited to the Accounts Receivable account.
d. A $45,000 debit to the Land account was debited to an expense account.
e. A $200 payment on an account payable was credited to Accounts Receivable instead of Cash.
f. A $350 debit to the Dividends account was posted as $530.
Total AssetsTotal LiabilitiesShareholders' Equity
a.0+$1,8000
b.
c.
d.
e.
f.
154) Provide a description of the events at Smart's Corp. represented by each of the following journal entries:
a) Dr. Cash$500,000
Cr. Land$500,000
b) Dr. Accounts Receivable$20,000
Cr. Revenue$20,000
c) Dr. Cash$100,000
Cr. Common Stock$100,000
d) Dr. Capital Assets - Equipment $55,000
Cr. Note Payable$55,000
e) Dr. Rent Expense$125,000
Cr. Cash$125,000