Transaction AnalysisGoal Systems, a business consulting firm, engaged in the following transactions:a. Issued common stock for $100,000 cash.b. Borrowed $60,000 from a bank.c. Purchased equipment for $42,000 cash.d. Prepaid rent on office space for 6 months in the amount of $9,000.e. Performed consulting services in exchange for $7,100 cash,f. Performed consulting services on credit in the amount of $19,250.9. Incurred and paid wage expense of $10,200.h. Collected $13,500 of the receivable arising from Transaction f1. Purchased supplies for $1,680 on credit.3. Used $1,100 of the supplies purchased in Transaction ik. Paid for all of the supplies purchased in Transaction 1.Required:For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave itblank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (ie. Asset, Liability), enter "0" since the neteffect on the item is zero.a.b.Cd.e.f.9h.AssetsW Liabilities. +Stockholders' EquityContributedCapital+RetainedEarnings a.b.C.d.9.h.j.k.Assets00011LiabilitiesStockholders' EquityContributedCapital000⁰00Retained+ Earnings

Name: Transaction AnalysisGoal Systems, a business consulting firm, engaged
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Description: Transaction AnalysisGoal Systems, a business consulting firm, engaged in the following transactions:a. Issued common stock for $100,000 cash.b. Borrowed $60,000 from a bank.c. Purchased equipment for $42,000 cash.d. Prepaid rent on office space for

ACCOUNTING EQUATION Accounting Equation is a Financial Accounting Technique which represents the…

Business

Accounting

Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (ie. Asset, Liability), enter "0" since the net effect on the item is zero. b. C. d. e. t. 9- Assets . Liabilities + Stockholders' Equity Contributed Capital Retained Earnings

Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (ie. Asset, Liability), enter "0" since the net effect on the item is zero. b. C. d. e. t. 9- Assets . Liabilities + Stockholders' Equity Contributed Capital Retained Earnings

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Transaction Analysis
Goal Systems, a business consulting firm, engaged in the following transactions:
a. Issued common stock for $100,000 cash.
b. Borrowed $60,000 from a bank.
c. Purchased equipment for $42,000 cash.
d. Prepaid rent on office space for 6 months in the amount of $9,000.
e. Performed consulting services in exchange for $7,100 cash,
f. Performed consulting services on credit in the amount of $19,250.
9. Incurred and paid wage expense of $10,200.
h. Collected $13,500 of the receivable arising from Transaction f
1. Purchased supplies for $1,680 on credit.
3. Used $1,100 of the supplies purchased in Transaction i
k. Paid for all of the supplies purchased in Transaction 1.
Required:
For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it
blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (ie. Asset, Liability), enter "0" since the net
effect on the item is zero.
a.
b.
C
d.
e.
f.
9
h.
Assets
W Liabilities. +
Stockholders' Equity
Contributed
Capital
+
Retained
Earnings

a.
b.
C.
d.
9.
h.
j.
k.
Assets
000
11
Liabilities
Stockholders' Equity
Contributed
Capital
000⁰00
Retained
+ Earnings

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