Show the effects of each transaction on the accounting equation by indicating under the proper heading the dollar amount of increase or decrease for each transaction listed below. Compute the resulting accounting equation.
Show the effects of each transaction on the accounting equation by indicating under the proper heading the dollar amount of increase or decrease for each transaction listed below. Compute the resulting accounting equation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Show the effects of each transaction on the accounting equation by indicating under the proper heading the dollar amount of increase or decrease for each transaction listed below. Compute the resulting accounting equation.
a. | Owner deposited $20,000 in his new business checking account. |
b. | Supplies were purchased for $300 on account. |
c. | Paid a $1,200 premium for six months of liability insurance. |
d. | Purchased supplies for $200 cash. |
e. | Purchased equipment for $4,000 by paying $1,000; the rest to be paid in six months. |
f. | Paid the $300 bill outstanding (from transaction b). |
g. | Owner withdrew $700 from the business for personal use. |
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Follow-up Question
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3
9.
-200
E
-1,000
D
Ed + D²
-300
PROOF
-700
16,600
Cash
C
Supplies
Prepaid Insurance
Equipment
JU
t.
$
4
F4
71
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OLS
F
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10
120° 40
%
G
B
200
500
Y
4
H
200
F7
N
8
F8
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8
Accounts Payable
Capital
Drawing
D
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M
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9
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4,000
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Transcribed Image Text:e.
3
9.
-200
E
-1,000
D
Ed + D²
-300
PROOF
-700
16,600
Cash
C
Supplies
Prepaid Insurance
Equipment
JU
t.
$
4
F4
71
R
OLS
F
V
10
120° 40
%
G
B
200
500
Y
4
H
200
F7
N
8
F8
J
00 *
8
Accounts Payable
Capital
Drawing
D
B
M
09
9
K
U
F10
W
All
F11
0+
Previous
PrtSc
C
+ 11
.
7
4,000
4,000
Next
Insert
1
2:13
10/1/2
Delete
Backst
Solution
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