Question Topic– Analysing business transactions.The following table contains several business transactions for the current month.Required: Identify the names of which accounts are affected, how they are affected (+/-, increase or decrease), and the element of the financial statement of these accounts (A, L, OE, R, E). BusinessThe ownerPurchasedCash receivedBorrowedPaid $250 cash$40,000 fromthe bank to beTransactionscontributedfor servicesfor advertisingcomputer$30,000 cash to equipment for$18,000 onprovided$6,900.expense for thecurrent month.commence therepaid in 5business.credit.years.Account name+/- (Increase/decrease)ElementAccount name+/- (Increase/decrease)Element

Basic elements of financial statements are 1. Assets 2. Liabilities 3. Owner's Equity 4. Revenue 5.…

Answered: The following table contains several…

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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Question Topic– Analysing business transactions.

The following table contains several business transactions for the current month.

Required: Identify the names of which accounts are affected, how they are affected (+/-, increase or decrease), and the element of the financial statement of these accounts (A, L, OE, R, E).

Business
The owner
Purchased
Cash received
Borrowed
Paid $250 cash
$40,000 from
the bank to be
Transactions
contributed
for services
for advertising
computer
$30,000 cash to equipment for
$18,000 on
provided
$6,900.
expense for the
current month.
commence the
repaid in 5
business.
credit.
years.
Account name
+/- (Increase/
decrease)
Element
Account name
+/- (Increase/
decrease)
Element

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