Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by abletter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. For example, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200. ASSETS LIABILITIES OWNER'S EQUITY Cash + Account Land+ Building+ Equipment= Account Payable+ M.Saljad Capital Receivables + $39,000 $110,000 Balances (a) Balances $26,000 - 3,200 $45,000 $42,000 $214,000 $36,000 + 3,200 $39,200 $22,800 + 900 $39,000 $42,000 $214,000 $45,000 $110,000 900 (b) Balances $214,000 $23,700 - 3,500 $20,200 $38,100 $45,000 $110,000 $39,200 + 13,500 $42,000 + 10,000 (c) Balances $214,000 $38,100 $45,000 $110,000 $52,700 $52,000 - 14,500 14,500 (d) Balance $37,500 $5,700 + 15,000 $38,100 $45,000 $110,000 $52,700 (e) Balances $214,000 + 15,000 $229,000 $45,000 $20,700 3,500 $52,700 + 2,100 $37,500 + 2,100 $38,100 $110,000 (1) Balances $20,700 $38,100 $45.000 $110,000 $54,800 $39.600 $229.000 Recording the effects of business transaction
Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by abletter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. For example, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200. ASSETS LIABILITIES OWNER'S EQUITY Cash + Account Land+ Building+ Equipment= Account Payable+ M.Saljad Capital Receivables + $39,000 $110,000 Balances (a) Balances $26,000 - 3,200 $45,000 $42,000 $214,000 $36,000 + 3,200 $39,200 $22,800 + 900 $39,000 $42,000 $214,000 $45,000 $110,000 900 (b) Balances $214,000 $23,700 - 3,500 $20,200 $38,100 $45,000 $110,000 $39,200 + 13,500 $42,000 + 10,000 (c) Balances $214,000 $38,100 $45,000 $110,000 $52,700 $52,000 - 14,500 14,500 (d) Balance $37,500 $5,700 + 15,000 $38,100 $45,000 $110,000 $52,700 (e) Balances $214,000 + 15,000 $229,000 $45,000 $20,700 3,500 $52,700 + 2,100 $37,500 + 2,100 $38,100 $110,000 (1) Balances $20,700 $38,100 $45.000 $110,000 $54,800 $39.600 $229.000 Recording the effects of business transaction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In this question interpret the effects of business transaction. You are to write a separate statement explaining the nature of the transaction from a to f.
Transcribed Image Text:Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by
ab letter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. For
example, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200.
ASSETS
LIABILITIES
OWNER'S EQUITY
Account
Receivables +
Building+ Equipment=
Cash +
Land+
Account Payable+
M.Sajad Capital
Balances
$26,000
$39,000
$45,000
$110,000
$36,000
$42,000
$214,000
3,200
+ 3,200
(a)
Balances
$22,800
$39,000
$45,000
$110,000
$39,200
$42,000
$214,000
(b)
+ 900
900
Balances
$23,700
$38,100
$45,000
$110,000
$214,000
$39,200
+ 13,500
$42,000
+ 10,000
- 3,500
(c)
Balances
$20,200
14,500
$38,100
$45,000
$110,000
$52,700
$214,000
$52,000
- 14,500
(d)
$5,700
$38,100
$45,000
$110,000
$52,700
$37,500
$214,000
+ 15,000
Balance
+ 15,000
(e)
Balances
$20,700
$38,100
$45,000
$110,000
$52,700
$37,500
$229,000
3,500
+ 2,100
+ 2,100
(f)
Balances
$20,700
$38,100
$45,000
$110,000
$54,800
$39,600
$229,000
Recording the effects of business transaction
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