Answered: The following transactions were…

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

The following transactions were completed by the company:

The owner invested $15,000 cash in the company in exchange for its common stock.
The company purchased supplies for $500 cash.
The owner invested $10,000 of equipment in the company in exchange for more common stock.
The company purchased $200 of additional supplies on credit.
The company purchased land for $9,000 cash.

Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

Transactions Number
a.
b.
Balance after a and b
C.
Balance after c
d.
Balance after d
e.
Balance after e
Cash
+
$ 15,000 +
(500) +
14,500 +
+
14,500 +
+
14,500 +
+
$ 14,500 +
Supplies
$
$
Assets
+
+
500 +
500 +
+
500 +
+
500 +
+
500 +
Equipment +
$
0
0
+
0
+
+
0 +
+
+
+
+
+
$
Land
0
0
0
0
=
=
=
=
=
=
=
=
=
=
Liabilities +
Accounts
Payable
$
+
+
+
0 +
+
0 +
+
0 +
+
0 +
Common
Stock
$ 15,000
$
15,000
15,000
15,000
15,000
Equity
Dividends +
$
+
+
0 +
+
0 +
+
0 +
+
0 +

+
++
+
+
+
+
+
+
+
Revenue
$
0
0
0
0
I
I
I
-
Expenses
$
0
0
0
0

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