The following transactions occur for T-Bird Music Academy during the month of October: 1. Provide music lessons to students for $17,000 cash. 2. Purchase prepaid insurance to protect musical equipment over the next year for $4,200 cash. 3. Purchase musical equipment for $20,000 cash. 4. Obtain a loan from a bank by signing a note for $30,000. Analyze each transaction and show the effects of each on the accounting equation. Note: Decreases to account classifications should be indicated by a minus sign. Transaction (1) (1) (2) (2) (3) (3) (4) (4) Assets II E = = = = = Liabilities + + + + + + + + + Stockholders' Equity

The following transactions occur for T-Bird Music Academy during the month of October: 1. Provide music lessons to students for $17,000 cash. 2. Purchase prepaid insurance to protect musical equipment over the next year for $4,200 cash. 3. Purchase musical equipment for $20,000 cash. 4. Obtain a loan from a bank by signing a note for $30,000. Analyze each transaction and show the effects of each on the accounting equation. Note: Decreases to account classifications should be indicated by a minus sign. Transaction (1) (1) (2) (2) (3) (3) (4) (4) Assets II E = = = = = Liabilities + + + + + + + + + Stockholders' Equity

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Description: The following transactions occur for T-Bird Music Academy during the month ofOctober:1. Provide music lessons to students for $17,000 cash.2. Purchase prepaid insurance to protect musical equipment over the next yearfor $4,200 cash.3. Purchase music

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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