1- On a separate piece of paper, complete the following chart to show the effect of each transaction on the accounting equation.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 1PA: Provide journal entries to record each of the following transactions. For each, also identify *the...
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1- On a separate piece of paper, complete the following chart to show the effect of each transaction on the accounting equation.

Transaction Assets = Liabilities + Shareholders’ Equity

1. Owners contributed $30,000 cash.

2. Purchased property for $20,000 cash.

3. Borrowed $9,000 cash from bank.

4. Provided services for $8,000 on account.

5. Paid $5,500 cash for expenses.

6. Paid $500 cash dividend to owners.

2- Consider the same transactions as in question 1, but this time complete the following chart, using a separate sheet of paper.

Assets = Liabilities + Shareholders’ Equity
Trans. Cash Accounts Receivable Property = Notes Payable + Common Stock Retained Earnings

1.

2.

3.

4.

5.

6.

         

3- Total each asset, liability, and shareholders’ equity account in question 2, and prepare an income statement, a statement of shareholders’ equity, a balance sheet, and a statement of cash flows. Assume that the current year (i.e., 2020) is the company’s first year of operations, and the year end is December 31.

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