Blooms Taxonomy: AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 2 Medium Learning Objective: 02-P1 Topic: Debit Topic: Credit Topic: T Account Topic: Ledger Topic: Transaction Analysis [Question] 169. A company paid $2,500 cash to satisfy a previously recorded account payable, the only liability on the books. Assume the company had a $4,000 balance in Cash immediately prior to this transaction. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. Show ending account balances. Answer: Accounts Payable Cash 2,500 Beg bal Beg bal4,000 2,500 2,500 0 End bal End bal 1,500
Blooms Taxonomy: AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 2 Medium Learning Objective: 02-P1 Topic: Debit Topic: Credit Topic: T Account Topic: Ledger Topic: Transaction Analysis [Question] 169. A company paid $2,500 cash to satisfy a previously recorded account payable, the only liability on the books. Assume the company had a $4,000 balance in Cash immediately prior to this transaction. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. Show ending account balances. Answer: Accounts Payable Cash 2,500 Beg bal Beg bal4,000 2,500 2,500 0 End bal End bal 1,500
Test-Bank-Financial-and-Managerial-Accounting-5th-Edition-Wild.docx