Anderson Book Company Shows the Following Transactions for the Accounting

question 43

Essay

Anderson Book Company shows the following transactions for the accounting period ending December 31,2012:
1)Sold books to customers for $34,000 on account
2)Collected $28,000 from customers
3)Issued common stock for $8,000 cash
4)Prepaid four months rent for $4,400 on October 1,2012
5)Purchase supplies for $10,500 cash
6)Physical count shows $3,250 of supplies left over on December 31,2012
7)Recorded adjustment for prepaid rent used up
Show how the above transactions and yearend adjustments affect the financial statement accounts on the accounting equation.After entering all the transactions and adjustments,enter column totals.

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Definitions:

Cash Flows

Refers to the total amount of money being transferred into and out of a business, especially affecting liquidity.

Years

Units of time equal to 365 days (or 366 days in a leap year), often used as a measure of time for financial, operational, or strategic planning.

Interest Rate

The rate a borrower pays to a lender for using assets, expressed in terms of the principal's percentage.

Borrow

The act of receiving something from someone with the intention of returning it or its equivalent after a period of time.