The following chart to show the effect of each transaction on the accounting equation.TransactionAssets = Liabilities + Shareholders’ Equity1. Owners contributed $30,000 cash.2. Purchased property for $20,000 cash.3. Borrowed $9,000 cash from bank.4. Provided services for $8,000 on account.5. Paid $5,500 cash for expenses.6. Paid $500 cash dividend to owners.Effect of each transaction on the accounting equationParticularsAssets=Liability+EquityOwners contributed $30,000 cash.$30,0000$30,000Purchased property for $20,000 cash.$20,000-$20,00000Borrowed $9,000 cash from bank.$9,000$9,0000Provided services for $8,000 on account.$8,0000$8,000Paid $5,500 cash for expenses.($5,500) ($5,500)Paid $500 cash dividend to owners.($500)0($500 )Consider the same transactions as above, but this time complete the following chart, using a separate sheet of paper.Assets=Liabilities+Shareholders’ EquityTrans.CashAccounts ReceivableProperty=Notes Payable+Common StockRetained Earnings1.2.3.4.5.6.

Name: The following chart to show the effect of each transaction on the acco
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Description: The following chart to show the effect of each transaction on the accounting equation.TransactionAssets = Liabilities + Shareholders’ Equity1. Owners contributed $30,000 cash.2. Purchased property for $20,000 cash.3. Borrowed $9,000 cash from bank.4.

The accounting equation states that assets equal to sum of liabilities and shareholders' equity.

Answered: The following chart to show the effect…

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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The following chart to show the effect of each transaction on the accounting equation.

Transaction	Assets = Liabilities + Shareholders’ Equity

1. Owners contributed $30,000 cash.

2. Purchased property for $20,000 cash.

3. Borrowed $9,000 cash from bank.

4. Provided services for $8,000 on account.

5. Paid $5,500 cash for expenses.

6. Paid $500 cash dividend to owners.

Effect of each transaction on the accounting equation

Particulars	Assets=	Liability+	Equity
Owners contributed $30,000 cash.	$30,000	0	$30,000
Purchased property for $20,000 cash.	$20,000-$20,000	0	0
Borrowed $9,000 cash from bank.	$9,000	$9,000	0
Provided services for $8,000 on account.	$8,000	0	$8,000
Paid $5,500 cash for expenses.	($5,500)		($5,500)
Paid $500 cash dividend to owners.	($500)	0	($500 )

Consider the same transactions as above, but this time complete the following chart, using a separate sheet of paper.

Assets

Liabilities

Shareholders’ Equity

Trans.

Cash

Accounts Receivable

Property

Notes Payable

Common Stock

Retained Earnings

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