In this exercise you purchase machines for $500 and resell them for $1000. Business Transactions Prepay $500 for rental of store Receive store rental invoice Purchase 5 machines on credit Sell 3 machines on credit Pay owners salary of $1000/month Pay $2500 invoice for 5 machines purchased Receive cash payment for sale on credit Sell 2 machines for cash Accounting Transactions Income Statement Cost of Revenues Revenues SG&A Net Income Cash Accounts Receivable Balance Sheet Inventory Prepaid Rent Accounts Payable Change in Assets= $ ssssss Change in Liabilities - $ - $ - $ $ $ $ $ $ + Change in Equity $ $ - S $ $ $ - $ $ $
In this exercise you purchase machines for $500 and resell them for $1000. Business Transactions Prepay $500 for rental of store Receive store rental invoice Purchase 5 machines on credit Sell 3 machines on credit Pay owners salary of $1000/month Pay $2500 invoice for 5 machines purchased Receive cash payment for sale on credit Sell 2 machines for cash Accounting Transactions Income Statement Cost of Revenues Revenues SG&A Net Income Cash Accounts Receivable Balance Sheet Inventory Prepaid Rent Accounts Payable Change in Assets= $ ssssss Change in Liabilities - $ - $ - $ $ $ $ $ $ + Change in Equity $ $ - S $ $ $ - $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
![319 In this exercise you purchase machines for $500 and resell them for $1000.
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
Business Transactions
Prepay $500 for rental of store
Receive store rental invoice
Purchase 5 machines on credit
Sell 3 machines on credit
Pay owners salary of $1000/month
Pay $2500 invoice for 5 machines purchased
Receive cash payment for sale on credit
Sell 2 machines for cash
Accounting Transactions
Income Statement
Cost of
Revenues
Revenues
SG&A
Net Income
$
$
$
$
$
$
$
$
Cash
Accounts
Receivable
Balance Sheet
Inventory
Prepaid Rent
Accounts
Payable
$
Change in
Assets =
$
$
$
$
$
$
$
Change in
Liabilities
$
$
-
- $
- $
- $
$
$
$
+ Change in
Equity
$
- $
- $
- $
- $
- $
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d76b0ce-7373-485b-8261-c9439c1c2ac2%2F4804acd4-5ae7-42f1-8fad-6f405b6c8da4%2Fhm7ni0j_processed.png&w=3840&q=75)
Transcribed Image Text:319 In this exercise you purchase machines for $500 and resell them for $1000.
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
Business Transactions
Prepay $500 for rental of store
Receive store rental invoice
Purchase 5 machines on credit
Sell 3 machines on credit
Pay owners salary of $1000/month
Pay $2500 invoice for 5 machines purchased
Receive cash payment for sale on credit
Sell 2 machines for cash
Accounting Transactions
Income Statement
Cost of
Revenues
Revenues
SG&A
Net Income
$
$
$
$
$
$
$
$
Cash
Accounts
Receivable
Balance Sheet
Inventory
Prepaid Rent
Accounts
Payable
$
Change in
Assets =
$
$
$
$
$
$
$
Change in
Liabilities
$
$
-
- $
- $
- $
$
$
$
+ Change in
Equity
$
- $
- $
- $
- $
- $
$
$
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