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
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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.
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