Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. For each transaction below, indicate how the transaction affects the accounting equation (Assets = Liabilities + Owners' Equity) by listing which accounts were affected (e.g., Cash, Accounts Payable, etc.), whether the account increased or decreased, and whether that account was tied to Assets, Liabilities, or Owners' Equity. Make sure that the accounting equation still

1. For each transaction below, indicate how the transaction affects the accounting equation (Assets = Liabilities + Owners' Equity) by listing which accounts were affected (e.g., Cash, Accounts Payable, etc.), whether the account increased or decreased, and whether that account was tied to Assets, Liabilities, or Owners' Equity. Make sure that the accounting equation still

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

please do exmaple and transactions as that is part of question 1. thanks 

1. For each transaction below, indicate how the transaction affects the accounting equation (Assets = Liabilities + Owners' Equity) by listing which accounts were affected (e.g., Cash, Accounts Payable, etc.), whether the account increased or decreased, and whether that account was tied to Assets, Liabilities, or Owners' Equity. Make sure that the accounting equation still balances. Examples: Example 1: Purchased a building for $1,000,000 in cash Example 2: Issued shares of common stock to investors in exchange for $100,000 cash Effect on Accounting Equation: Cash (Assets) ↑ $100,000, Common Stock (Equity) ↑ $100,000 Liabilities + Owners' Equity Example 1 Example 2 Transactions: a с e f 8.0 g Assets= Building ↑ $1,000,000 Cash $1,000,000 Cash ↑ $100,000 Assets= a. Repaid loan of $20,000 b. Purchased $4,000 of inventory on account c. Received $15,000 in cash from clients for consulting services performed d. Purchased equipment by taking out a loan with the bank for $500,000 e. Sold inventory that cost $3,000 to customers for $5,000 on account. f. Paid dividend of $50,000 to investors g. Paid rent of $4,000 for the current month Common Stock ↑ $100,000 Liabilities + Owners' Equity
Transcribed Image Text:1. For each transaction below, indicate how the transaction affects the accounting equation (Assets = Liabilities + Owners' Equity) by listing which accounts were affected (e.g., Cash, Accounts Payable, etc.), whether the account increased or decreased, and whether that account was tied to Assets, Liabilities, or Owners' Equity. Make sure that the accounting equation still balances. Examples: Example 1: Purchased a building for $1,000,000 in cash Example 2: Issued shares of common stock to investors in exchange for $100,000 cash Effect on Accounting Equation: Cash (Assets) ↑ $100,000, Common Stock (Equity) ↑ $100,000 Liabilities + Owners' Equity Example 1 Example 2 Transactions: a с e f 8.0 g Assets= Building ↑ $1,000,000 Cash $1,000,000 Cash ↑ $100,000 Assets= a. Repaid loan of $20,000 b. Purchased $4,000 of inventory on account c. Received $15,000 in cash from clients for consulting services performed d. Purchased equipment by taking out a loan with the bank for $500,000 e. Sold inventory that cost $3,000 to customers for $5,000 on account. f. Paid dividend of $50,000 to investors g. Paid rent of $4,000 for the current month Common Stock ↑ $100,000 Liabilities + Owners' Equity
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS