Ahmad started his own Computer service on January 1, 2020. The following transactions occurred during the month of January. January        01           Ahmad invested $ 200000 cash in the business                      03           Paid $ 10000 for office rent for the month                      05           Service provided on account $ 15000                      12           Purchased supplies for $ 3000 on account                      15           Received a cash payment of $ 5000 for services provided on January 05                      17           Purchased gasoline for $ 2000 on account                      23           Received Bank Loan of $ 40000 on the note payable Instructions Show the effects of these transactions on the accounting equation Prepare a balance sheet at January 31, 2020

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred during the month of January.

January        01           Ahmad invested $ 200000 cash in the business

                     03           Paid $ 10000 for office rent for the month

                     05           Service provided on account $ 15000

                     12           Purchased supplies for $ 3000 on account

                     15           Received a cash payment of $ 5000 for services provided on January 05

                     17           Purchased gasoline for $ 2000 on account

                     23           Received Bank Loan of $ 40000 on the note payable

Instructions

  1. Show the effects of these transactions on the accounting equation
  2. Prepare a balance sheet at January 31, 2020
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