Answered: State whether there is an increase,…

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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State whether there is an increase, decrease, or no entry for the following transactions, using the accounting equation (Assets = Liabilities + Owner's Equity):

Question:

a) Jess signs a lease agreement to rent some space for her new business. The rent is around $1,100 per month.

b) Jess borrowed $5,500 from her cousin to buy some supplies for her new business.

c) The money that Jess borrowed from her cousin, is then deposited in a new bank account, followed by $750 of her own money (in cash), under a new account with the name Jess's Pet Sitting.

Please Explain.

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