Based on the following transactions, complete the table shown below. a. A shareholder paid Southgate Inc. $20,000 cash for share capital in the business. b. Southgate Inc. purchased new equipment by paying $750 cash. c. A client rented equipment for $1,900 cash. d. Southgate Inc. bought $3,750 of equipment, using $750 cash and $3,000 on account. e. Furniture was rented by a customer for $1,100 cash. f. A client rented equipment for $6,500 cash. g. Southgate Inc. collected $1,100 for commissions earned today. h. Southgate Inc. paid $2,750 for equipment purchased today. i. Southgate Inc. used credit to purchase $2,000 of equipment. j. Southgate Inc. paid dividends of $1,400 to the shareholders. a) To complete the table shown below, identify the headings (account names) for each column by clicking on the appropriate cell and making a selection. Use additions (+ sign) and subtractions (-sign) to show the transactions' effects on the elements of the equation. Indicate next to each change in equity (in the explanation column) whether it was caused by the issuance of share capital (investment). a revenue, an expense or payment of dividends. Identify revenues and expenses by name. If a transaction does not affect equity, no explanation is required. Calculate the total balance for each column (no+or-sign is required for totals) Assets = Liabilities (c) (d) (e) (1) (9) (h) (1) (1) Bal. Equity +Share Capital+Retained Earnings Accounting equation: Explanation b) Prove the accounting equation by calculating total assets and comparing it to the total of liabilities plus equity. Please make sure your final answer(s) are accurate to the nearest whole number. = Total liabilities and equity Total assets
Based on the following transactions, complete the table shown below. a. A shareholder paid Southgate Inc. $20,000 cash for share capital in the business. b. Southgate Inc. purchased new equipment by paying $750 cash. c. A client rented equipment for $1,900 cash. d. Southgate Inc. bought $3,750 of equipment, using $750 cash and $3,000 on account. e. Furniture was rented by a customer for $1,100 cash. f. A client rented equipment for $6,500 cash. g. Southgate Inc. collected $1,100 for commissions earned today. h. Southgate Inc. paid $2,750 for equipment purchased today. i. Southgate Inc. used credit to purchase $2,000 of equipment. j. Southgate Inc. paid dividends of $1,400 to the shareholders. a) To complete the table shown below, identify the headings (account names) for each column by clicking on the appropriate cell and making a selection. Use additions (+ sign) and subtractions (-sign) to show the transactions' effects on the elements of the equation. Indicate next to each change in equity (in the explanation column) whether it was caused by the issuance of share capital (investment). a revenue, an expense or payment of dividends. Identify revenues and expenses by name. If a transaction does not affect equity, no explanation is required. Calculate the total balance for each column (no+or-sign is required for totals) Assets = Liabilities (c) (d) (e) (1) (9) (h) (1) (1) Bal. Equity +Share Capital+Retained Earnings Accounting equation: Explanation b) Prove the accounting equation by calculating total assets and comparing it to the total of liabilities plus equity. Please make sure your final answer(s) are accurate to the nearest whole number. = Total liabilities and equity Total assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Based on the following transactions, complete the table shown below.
a. A shareholder paid Southgate Inc. $20,000 cash for share capital in the business.
b. Southgate Inc. purchased new equipment by paying $750 cash.
c. A client rented equipment for $1,900 cash.
d. Southgate Inc. bought $3,750 of equipment, using $750 cash and $3,000 on account.
e. Furniture was rented by a customer for $1,100 cash.
f. A client rented equipment for $6,500 cash.
g. Southgate Inc. collected $1,100 for commissions earned today.
h. Southgate Inc. paid $2,750 for equipment purchased today.
i. Southgate Inc. used credit to purchase $2,000 of equipment.
j. Southgate Inc. paid dividends of $1,400 to the shareholders.
a) To complete the table shown below, identify the headings (account names) for each column by clicking on the appropriate cell and making a selection. Use additions (+ sign) and subtractions (-sign)
to show the transactions' effects on the elements of the equation. Indicate next to each change in equity (in the explanation column) whether it was caused by the issuance of share capital (investment),
a revenue, an expense or payment of dividends. Identify revenues and expenses by name. If a transaction does not affect equity, no explanation is required. Calculate the total balance for each column
(no + or - sign is required for totals)
Assets
= Liabilities
DEDE6Ees
Bal.
Equity
+Share Capital + Retained Earnings
Accounting equation:
Explanation
b) Prove the accounting equation by calculating total assets and comparing it to the total of liabilities plus equity. Please make sure your final answer(s) are accurate to the nearest whole number.
= Total liabilities and equity
Total assets
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