QUESTION 1 Please indicate the effect / impact of each transaction on the relevant accounts . Please follow the example shown EXAMPLE : ( 1 ) Owner invested £ 20,000 cash in the business ANSWER : ( 1 ) Cash increased by £ 20,000 . Owner capital increased by £ 20,000 . Transactions ( 1 ) Purchased £ 1,000 of supplies on credit . ( 2 ) Purchased £ 15,000 equipment for £ 10,000 cash and £ 5,000 note . ( 3 ) Received £ 25,000 cash for consulting service to be performed next month ( 4 ) At 31 December , the company paid £ 12,000 cash for December's rent . ( 5 ) Received £ 14,000 cash for 4,000 consulting service and 10,000 rental

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 1 Please indicate the effect / impact of each transaction on the relevant accounts . Please follow the example shown EXAMPLE : ( 1 ) Owner invested £ 20,000 cash in the business ANSWER : ( 1 ) Cash increased by £ 20,000 . Owner capital increased by £ 20,000 . Transactions ( 1 ) Purchased £ 1,000 of supplies on credit . ( 2 ) Purchased £ 15,000 equipment for £ 10,000 cash and £ 5,000 note . ( 3 ) Received £ 25,000 cash for consulting service to be performed next month ( 4 ) At 31 December , the company paid £ 12,000 cash for December's rent . ( 5 ) Received £ 14,000 cash for 4,000 consulting service and 10,000 rental
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