Exercise 1-12 (Static) Analysis using the accounting equation LO P1Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of thecompany's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its mostlikely description.Transaction Cash1.2.3.4.5.Transaction1.23.45Assets-Liabilities +AccountsAccountsPayable+Receivable Supplies +Equipment$0$$01,0001,0001,0001,000$40,000+38,000 +30,000+38,000 +31,000+$0+eo6,0006,000+3,0003,0003,0003,000++8,0008,0008,000DescriptionEquityCommon+ Stock +Revenues+ $40,000+ 40,000+ 40,000+40,000+ 40,000++++50@96,0007,000

Name: Exercise 1-12 (Static) Analysis using the accounting equation LO P1Ze
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Description: Exercise 1-12 (Static) Analysis using the accounting equation LO P1Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of thecompany's first five transactions. Analyze the accounting

The accounting equation states that assets are equal to the sum of the liabilities and equity. The…

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Accounting

Exercise 1-12 (Static) Analysis using the accounting equation LO PI Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the company's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most likely description. Assets Accounts Transaction Cash Receivable Supplies +Equipment 1. $40,000+ 50 se 2. 38,000 3. 30,000 4. 5. Transaction 1. 2 3 4 5 30,000+ 31,000+ 5,000 6,000 $0. 3,000+ + 3,000 + 3,000. 3,000 + 8,000 8,000 8,000 -Liabilities Accounts - Common Payable + Stock Revenues +$40,000. 50 @ 50 1,000 1,000+ 1,000 1,000 Description Equity . 40,000. 40,000. 40,000. 40,000+ . 6,000 7,000

Exercise 1-12 (Static) Analysis using the accounting equation LO PI Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the company's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most likely description. Assets Accounts Transaction Cash Receivable Supplies +Equipment 1. $40,000+ 50 se 2. 38,000 3. 30,000 4. 5. Transaction 1. 2 3 4 5 30,000+ 31,000+ 5,000 6,000 $0. 3,000+ + 3,000 + 3,000. 3,000 + 8,000 8,000 8,000 -Liabilities Accounts - Common Payable + Stock Revenues +$40,000. 50 @ 50 1,000 1,000+ 1,000 1,000 Description Equity . 40,000. 40,000. 40,000. 40,000+ . 6,000 7,000

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Exercise 1-12 (Static) Analysis using the accounting equation LO P1
Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the
company's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most
likely description.
Transaction Cash
1.
2.
3.
4.
5.
Transaction
1.
2
3.
4
5
Assets
-Liabilities +
Accounts
Accounts
Payable
+Receivable Supplies +Equipment
$0
$
$0
1,000
1,000
1,000
1,000
$40,000+
38,000 +
30,000+
38,000 +
31,000
+
$0
+
e
o
6,000
6,000
+
3,000
3,000
3,000
3,000
+
+
8,000
8,000
8,000
Description
Equity
Common
+ Stock +Revenues
+ $40,000
+ 40,000
+ 40,000
+
40,000
+ 40,000
+
+
+
+
50
@
9
6,000
7,000

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