Shannon O'Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the accounts shown in the following accounting equation. Use the form in your Working Papers to complete this problem. For each transaction, complete the following. Transaction 1 is given as an example. a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns using a plus sign( + ) if the account increases or a minus sign(-) if the account decreases. c. F or transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Ca lculate a new balance for each transaction in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. Transactions: 1. Paid cash for rent, $400.00$400.00. 2. Owner withdrew equity in the form of cash, $150.00$150.00. 3. Received cash from sales, $900.00$900.00. 4. Paid cash for camera repairs, $100.00$100.00 5. Sold services on account to Eden Wedding Planners, $400.00$400.00. 6. Received cash from sales, $650.00$650.00. 7. Paid cash for charitable contributions, $35.00$35.00. 8. Received cash on account from Eden Wedding Planners, $300.00$300.00. The image shows a partial accounting worksheet for an educational exercise, labeled "Application Problem 1-3." It is used to practice recording business transactions. The worksheet consists of columns for "Cash," "Accounts Receivable - Eden Wedding Planners," "Supplies," "Prepaid Insurance," "Accounts Payable - Shutter Supplies," and "Shannon O'Bryan, Capital."### Column Headers:1. **Tran. No.**: Transaction Number.2. **Cash**: Balance and changes in cash.3. **Accounts Receivable - Eden Wedding Planners**: Amounts owed to the business by Eden Wedding Planners.4. **Supplies**: Inventory of supplies on hand.5. **Prepaid Insurance**: Costs paid in advance for insurance coverage.6. **Accounts Payable - Shutter Supplies**: Amounts owed by the business to Shutter Supplies.7. **Shannon O'Bryan, Capital**: Owner's equity or capital.### Recorded Transactions:- **Beginning Balance**: - Cash: 725 - Accounts Receivable: 0 - Supplies: 200 - Prepaid Insurance: 300 - Accounts Payable: 200 - Capital: 1,025- **Transaction 1**: - Cash: -400 (possible expense) - New Balance: Cash is 325, Capital reduces by 400, new value is 625.- **Transaction 2**: - Cash: -150 - New Balance: To be filled out by student as exercise.### Blank Spaces:The worksheet includes several blank sections where students are expected to fill in information related to each transaction and compute new balances after transactions 3 through 7.This worksheet provides a practical approach to understanding and applying basic accounting principles, using a structured format to track changes in financial accounts following business activities. **Transactions:**1. Paid cash for rent, $400.00.2. Owner withdrew equity in the form of cash, $150.00.3. Received cash from sales, $900.00.4. Paid cash for camera repairs, $100.00.5. Sold services on account to Eden Wedding Planners, $400.00.6. Received cash from sales, $650.00.7. Paid cash for charitable contributions, $35.00.8. Received cash on account from Eden Wedding Planners, $300.00.**Instructions:**Shannon O’Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the accounts shown in the following accounting equation. Transaction 1 is given as an example. For each transaction, complete the following:1. **Analyze the Transaction**: Determine which accounts in the accounting equation are affected.2. **Record the Transaction**: - In the appropriate columns, enter a plus sign (+) if the account increases or a minus sign (−) if the account decreases, and then enter the amount.3. **Effect on Owner’s Equity**: - For transactions that change owner's equity, enter a description (revenue, expense, investment, or withdrawal) of the transaction to the right of the amount.4. **Calculate Balances**: - Enter a new balance for each account in the accounting equation.5. **Ensure Accounting Balance**: - Before going on to the next transaction, determine that the accounting equation is still in balance.**Accounting Equation:**\[ \text{Assets} = \text{Liabilities} + \text{Owner’s Equity} \]

Accounting equation indicates the basic tool of accounting which is; Assets=Liability+Equity As per…

Shannon O'Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the accounts shown in the following accounting equation. Use the form in your Working Papers to complete this problem. For each transaction, complete the following. Transaction 1 is given as an example. a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns using a plus sign( + ) if the account increases or a minus sign(-) if the account decreases. c. F or transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Ca lculate a new balance for each transaction in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. Transactions: 1. Paid cash for rent, $400.00$400.00. 2. Owner withdrew equity in the form of cash, $150.00$150.00. 3. Received cash from sales, $900.00$900.00. 4. Paid cash for camera repairs, $100.00$100.00 5. Sold services on account to Eden Wedding Planners, $400.00$400.00. 6. Received cash from sales, $650.00$650.00. 7. Paid cash for charitable contributions, $35.00$35.00. 8. Received cash on account from Eden Wedding Planners, $300.00$300.00.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q