ws your responses and what was marked correct and incorrect from your previous a

Question

ws your responses and what was marked correct and incorrect from your previous attempt ward: 7.50 out of 15.00 points ome Team Corporation recently experienced and has made numerous errors recording daily business transactions Indicate the effects of the errors described below on each of the financial statement elements shown in he column headings. Use the following symbols: O for overstated, U for understated, and NE for no effect hired Steve Willits as its bookkeeper. Mr. Willits is somewhat Recorded the issuance of capital stock by debiting Capital Stock and crediting Cash Recorded the declaration and payment of a dividend by debiting NE Interest Expense and crediting Cash Recorded the payment of an account payable by debiting Cash and crediting Service Revenue Recorded the collection of an outstanding account receivable by debiting Cash and crediting Accounts Payable Recorded client billings on account by debiting Service Revenue NE and crediting Cash Recorded the cash purchase of land by debiting Cash and crediting Land Recorded the purchase of a building on account by debiting Rent NE Expense and crediting Capital Stock x U X NE NE NE X NE X NE X NE X NE X NE al Stock.a

Explanation / Answer

Cash A/C   Dr

   To Share Capital A/C

(For issuance of share capital)

Net Income        Total assets        Total liabilities    Owner’s equity

NE                          O                             NE                          O

Dividend A/C   Dr

     To Cash A/C

(For dividend paid)

Net Income        Total assets        Total liabilities    Owner’s equity

U                             U                             NE                          NE

Accounts payable A/C Dr

    To Cash A/C

(For accounts payable paid)

Net Income        Total assets        Total liabilities    Owner’s equity

NE                          U                             U                             NE

Cash A/C Dr

   To Accounts receivable A/C

(for cash received on accounts receivable)

Net Income        Total assets        Total liabilities    Owner’s equity

NE                          O                             NE                          NE

Bills payable A/C Dr

      To Cash A/C

(Cash paid for bills payable )

Net Income        Total assets        Total liabilities    Owner’s equity

NE                          U                             U                             NE

Land A/C   Dr

   To cash A/C

(For land purchased on cash)

Net Income        Total assets        Total liabilities    Owner’s equity

NE                          O                             NE                          NE

                  Building A/C   Dr

                       To Bills payable A/C

(Building purchased on account)

Net Income        Total assets        Total liabilities    Owner’s equity

NE                          O                                             O             NE

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