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
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 17PA: Prepare journal entries to record the following transactions for the month of November: A. on first...
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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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