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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

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.

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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education