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eht-take&inprogress=fa eBook Effect of Transactions on Accounting Equation David Segal started a business. During the first month (October 20--), the following transactions occurred. a. Invested cash in the business, $15,000. b. Bought office supplies for $3,800: $1,800 in cash and $2,000 on account. c. Paid one-year insurance premium, $1,000. d. Earned revenues amounting to $2,700: $1,700 in cash and $1,000 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $1,800. f. Paid office rent for the month, $650. g. Withdrew cash for personal use, $150. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Ca 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. a. Cash 15,000 T Assets (Items Owned) Accounts Receivable b. 1,800 C. 1,000 d. 1,700 1,000 e. 1,800 X + Office Supplies + Prepaid Insurance || Liabilities + Owner's (Amts. Owed) (Owner's Investment) Accounts + Payable D. Segal, Capital D. Segal, Drawing + 15,000 3,800 2,000 X 1,000 X f. g. 650 X X 150

eht-take&inprogress=fa eBook Effect of Transactions on Accounting Equation David Segal started a business. During the first month (October 20--), the following transactions occurred. a. Invested cash in the business, $15,000. b. Bought office supplies for $3,800: $1,800 in cash and $2,000 on account. c. Paid one-year insurance premium, $1,000. d. Earned revenues amounting to $2,700: $1,700 in cash and $1,000 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $1,800. f. Paid office rent for the month, $650. g. Withdrew cash for personal use, $150. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Ca 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. a. Cash 15,000 T Assets (Items Owned) Accounts Receivable b. 1,800 C. 1,000 d. 1,700 1,000 e. 1,800 X + Office Supplies + Prepaid Insurance || Liabilities + Owner's (Amts. Owed) (Owner's Investment) Accounts + Payable D. Segal, Capital D. Segal, Drawing + 15,000 3,800 2,000 X 1,000 X f. g. 650 X X 150

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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eht-take&inprogress=fa eBook Effect of Transactions on Accounting Equation David Segal started a business. During the first month (October 20--), the following transactions occurred. a. Invested cash in the business, $15,000. b. Bought office supplies for $3,800: $1,800 in cash and $2,000 on account. c. Paid one-year insurance premium, $1,000. d. Earned revenues amounting to $2,700: $1,700 in cash and $1,000 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $1,800. f. Paid office rent for the month, $650. g. Withdrew cash for personal use, $150. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Ca 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. a. Cash 15,000 T Assets (Items Owned) Accounts Receivable b. 1,800 C. 1,000 d. 1,700 1,000 e. 1,800 X + Office Supplies + Prepaid Insurance || Liabilities + Owner's (Amts. Owed) (Owner's Investment) Accounts + Payable D. Segal, Capital D. Segal, Drawing + 15,000 3,800 2,000 X 1,000 X f. g. 650 X X 150
Transcribed Image Text:eht-take&inprogress=fa eBook Effect of Transactions on Accounting Equation David Segal started a business. During the first month (October 20--), the following transactions occurred. a. Invested cash in the business, $15,000. b. Bought office supplies for $3,800: $1,800 in cash and $2,000 on account. c. Paid one-year insurance premium, $1,000. d. Earned revenues amounting to $2,700: $1,700 in cash and $1,000 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $1,800. f. Paid office rent for the month, $650. g. Withdrew cash for personal use, $150. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Ca 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. a. Cash 15,000 T Assets (Items Owned) Accounts Receivable b. 1,800 C. 1,000 d. 1,700 1,000 e. 1,800 X + Office Supplies + Prepaid Insurance || Liabilities + Owner's (Amts. Owed) (Owner's Investment) Accounts + Payable D. Segal, Capital D. Segal, Drawing + 15,000 3,800 2,000 X 1,000 X f. g. 650 X X 150
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