1. Accounting Equation Transactions: 1. Jada B invested $800,000 in cash to start up his company. 2. A building was purchased for $350,000 with a down payment of $100,000 and a mortgage note was signed for the balance of $250,000. 3. Equipment was purchased for $400,000. A down payment of $200,000 cash was made and a note was signed for the balance of $200,000. 4. Supplies of $45,000 were purchased with cash this will be used in the future. 5. Services were rendered to customers for $375,000 and received cash of $300,000 and the remaining $75,000 would be paid later by the customers. 6. Paid the office secretary's salary of $40,000. 7. Paid $3,500 for utilities used in the business. 8. Five customers paid cash of $230,000 for work to be performed in future months 9. The Company paid cash of $12,000 for future 12 months insurance. 10. Dividend of $50,000 cash was paid to the Jada B. Requirements: A. For each of the following transactions, apply the accounting equation Asset = Liability and Owner Equity. Use a spreadsheet similar to your lab to prepare each transaction. B. Identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and a "-" to indicate a decrease. N/A for not effect. Similar to your lab
1. Accounting Equation Transactions: 1. Jada B invested $800,000 in cash to start up his company. 2. A building was purchased for $350,000 with a down payment of $100,000 and a mortgage note was signed for the balance of $250,000. 3. Equipment was purchased for $400,000. A down payment of $200,000 cash was made and a note was signed for the balance of $200,000. 4. Supplies of $45,000 were purchased with cash this will be used in the future. 5. Services were rendered to customers for $375,000 and received cash of $300,000 and the remaining $75,000 would be paid later by the customers. 6. Paid the office secretary's salary of $40,000. 7. Paid $3,500 for utilities used in the business. 8. Five customers paid cash of $230,000 for work to be performed in future months 9. The Company paid cash of $12,000 for future 12 months insurance. 10. Dividend of $50,000 cash was paid to the Jada B. Requirements: A. For each of the following transactions, apply the accounting equation Asset = Liability and Owner Equity. Use a spreadsheet similar to your lab to prepare each transaction. B. Identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and a "-" to indicate a decrease. N/A for not effect. Similar to your lab
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Accounting Equation
Transactions:
1. Jada B invested $800,000 in cash to start up his company.
2. A building was purchased for $350,000 with a down payment of $100,000 and a mortgage note was
signed for the balance of $250,000.
3. Equipment was purchased for $400,000. A down payment of $200,000 cash was made and a note was
signed for the balance of $200,000.
4. Supplies of $45,000 were purchased with cash this will be used in the future.
5. Services were rendered to customers for $375,000 and received cash of $300,000 and the remaining
$75,000 would be paid later by the customers.
6. Paid the office secretary's salary of $40,000.
7. Paid $3,500 for utilities used in the business.
8. Five customers paid cash of $230,000 for work to be performed in future months
9. The Company paid cash of $12,000 for future 12 months insurance.
10. Dividend of $50,000 cash was paid to the Jada B.
Requirements:
A. For each of the following transactions, apply the accounting equation Asset = Liability and Owner
Equity. Use a spreadsheet similar to your lab to prepare each transaction.
B. Identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and a "-" to
indicate a decrease. N/A for not effect. Similar to your lab
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