Effects Of Transactions (Balance Sheet Accounts) John Sullivan started a business. During the first month (February 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets = Liabilities + Owner's Equity. After each transaction, show the new totals. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank. Liabilities Assets a. Invested cash in the business, $26,000. = Bal. b. Bought office equipment on account, $7,300. Owner's Equity
Effects Of Transactions (Balance Sheet Accounts) John Sullivan started a business. During the first month (February 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets = Liabilities + Owner's Equity. After each transaction, show the new totals. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank. Liabilities Assets a. Invested cash in the business, $26,000. = Bal. b. Bought office equipment on account, $7,300. Owner's Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Effects Of Transactions (Balance Sheet Accounts)
John Sullivan started a business. During the first month (February 20--), the following transactions occurred.
Show the effect of each transaction on the accounting equation: Assets = Liabilities + Owner's Equity. After each
transaction, show the new totals. Use the minus sign to indicate a decrease or reduction in the account. If an
amount box does not require an entry, leave it blank.
Assets
Liabilities
Owner's Equity
a. Invested cash in the business, $26,000.
Bal.
b. Bought office equipment on account, $7,300.
Bal.
c. Bought office equipment for cash, $1,200. (Enter the change in Cash on the first line and the
change in Equipment on the second line)
Bal.
d. Paid cash on account to supplier in transaction (b), $2,000.
Bal.
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