(LO2) wo (LO3/4) 2ng (6)$32,200 Net worth of owner Money withdrawn by owner Money owed by customers si noil gniza Assets THE ACCOUNTING EQUATION Using the accounting equation, compute the miss- ing elements. $32,000 $27,000 Accounts Payable Office Furniture John Smith, Capital John Smith, Drawing Accounts Receivable Liabilities $27,000 $18,000 + Owner's Equity $17,000 + + $20,000 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. (a) Invested cash in the business, $27,000. (b) Bought office equipment on account, $7,500. (c) Bought office equipment for cash, $1,600. (d) Paid cash on account to supplier in transaction (b), $2,300. 13:
(LO2) wo (LO3/4) 2ng (6)$32,200 Net worth of owner Money withdrawn by owner Money owed by customers si noil gniza Assets THE ACCOUNTING EQUATION Using the accounting equation, compute the miss- ing elements. $32,000 $27,000 Accounts Payable Office Furniture John Smith, Capital John Smith, Drawing Accounts Receivable Liabilities $27,000 $18,000 + Owner's Equity $17,000 + + $20,000 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. (a) Invested cash in the business, $27,000. (b) Bought office equipment on account, $7,500. (c) Bought office equipment for cash, $1,600. (d) Paid cash on account to supplier in transaction (b), $2,300. 13:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:(LO2)
wo
(LO3/4)
2ng (6)$32,200
Net worth of owner
Money withdrawn by owner
Money owed by customers
si noil gniza
Assets
THE ACCOUNTING EQUATION Using the accounting equation, compute the miss-
ing elements.
$32,000
$27,000
Accounts Payable
Office Furniture
John Smith, Capital
John Smith, Drawing
Accounts Receivable
Liabilities
$27,000
$18,000
+ Owner's Equity
$17,000
+
+ $20,000
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.
(a) Invested cash in the business, $27,000.
(b) Bought office equipment on account, $7,500.
(c) Bought office equipment for cash, $1,600.
(d) Paid cash on account to supplier in transaction (b), $2,300.
13:
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