a. The owner invested $16,400 cash in the company in exchange for its common stock. b. The company purchased supplies for $850 cash. c. The owner invested $10,700 of equipment in the company in exchange for more common stock. d. The company purchased $270 of additional supplies on credit. e. The company purchased land for $9,700 cash. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
a. The owner invested $16,400 cash in the company in exchange for its common stock. b. The company purchased supplies for $850 cash. c. The owner invested $10,700 of equipment in the company in exchange for more common stock. d. The company purchased $270 of additional supplies on credit. e. The company purchased land for $9,700 cash. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:a. The owner invested $16,400 cash in the company in exchange for its common stock.
b. The company purchased supplies for $850 cash.
c. The owner invested $10,700 of equipment in the company in exchange for more common stock.
d. The company purchased $270 of additional supplies on credit.
e. The company purchased land for $9,700 cash.
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances
with a minus sign.)
a
b.
Bal.
C
Bal
d.
Bal.
e.
Bal.
Cash
$ 16,400
✦
(850)+
15,550
15,550
+
+
+
D
15,550
(9,700) +
5,850
+
+
Supplies
$
850
850
850
850
850
Assets
+
+
+
+
.
+
+
+
Equipment
$
0
10,700
10,700
10,700
10,700
Ⓡ
+
+
+
✦
+
+
+
+
+
Land
$
+
0
0
0
9,700
9,700
S
-
M
=
-
=
=
W
=
Answer is not complete.
Liabilities
Accounts
Payable
$
0
+
270
+
+
+
+
0
270 +
270
+
+
+
Common
Stock
$ 16,400
16,400
16,400
16,400
16,400
-
-
-
I
-
Dividends
0
0
0
0
Equil
+
+
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