Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction for transaction details. Determine the new balance for each component of the accounting equation (assets, liabilities, owner’s equity) resulting from the transaction. (You will not need to enter the amount of each transaction, only the balance after the transaction.) If an amount box does not require an entry, leave it blank. Transaction Assets = Liabilities + Owner's Equity Beginning $0 $0 $0 1. Investment in the business The owner of the company invested $16,810 cash into the business 2. Borrow cash The company borrows $7,770 from the local bank 3. Purchase equipment The company pays cash for a piece of equipment. The list price was $9,100, but after negotiation the final was $8,700 4. Revenues earned During the year, Thomas Company earned revenues totaling $ 296,600. The cash has been collected from the customers for all revenue earned this year. 5. Expenses incurred Thomas Company incurred expenses totaling $210,900 during that same year. All of the expenses incurred this year were paid in cash. 6. Distributions At the end of each quater, Thomas Company distributed cash to its owners. The sum of those quaterly distribution was $ 15,400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction for transaction details. Determine the new balance for each component of the accounting equation (assets, liabilities, owner’s equity) resulting from the transaction. (You will not need to enter the amount of each transaction, only the balance after the transaction.) If an amount box does not require an entry, leave it blank.

Transaction	Assets =	Liabilities +	Owner's Equity
Beginning	$0	$0	$0
1. Investment in the business The owner of the company invested $16,810 cash into the business
2. Borrow cash The company borrows $7,770 from the local bank
3. Purchase equipment The company pays cash for a piece of equipment. The list price was $9,100, but after negotiation the final was $8,700
4. Revenues earned During the year, Thomas Company earned revenues totaling $ 296,600. The cash has been collected from the customers for all revenue earned this year.
5. Expenses incurred Thomas Company incurred expenses totaling $210,900 during that same year. All of the expenses incurred this year were paid in cash.
6. Distributions At the end of each quater, Thomas Company distributed cash to its owners. The sum of those quaterly distribution was $ 15,400.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions