increase asset, increase liability, decrease capital....)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:21)
Identify the effects of the following transactions on the asset, liability and owner's equity
(Capital): eg: increase asset, increase liability, decrease capital....)
item
Transaction
Effect
a.
Purchase a machine on credit
b
Sold vehicle by cheque
C.
Paid supplier by cash
d.
Withdraw cash by owner for personal use
e.
Received loan of cash from Alex
f.
Owner paid a creditor from his private funds
Customer paid us by cheque
g.
h.
Took $520 from bank and put in cash till
i.
Purchase lorry by cash
j.
Started business with $40,000 in bank account
Bought van by cheque
Sold some office equipment by cash
Purchase inventory by credit
Sold motor vehicle by credit
Owner took inventory for own use
Bought building $200,000 and paid cash $10,000 as
deposit, balance by credit
Paid loan by cheque
Purchase computer terminals from DE on credit
Received cash from customer
Owner put in additional $10,000 cash into business
Owner brought in a computer for office use
k.
1.
m.
n.
0.
P.
9.
r.
S.
t.
u.
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