Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31" July, 2020,
Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31" July, 2020,
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 1RE
Related questions
Question
![Question 1
The whole of financial accounting is based upon the very simple idea that, resources supplied by
the owner of the business plus liabilities that must be settled at a future date must be equal to the
resources in the business. It follows that the capital plus liabilities of the entity must be equal to
assets of the entity expressed as: Capital + Liabilities = Assets (i.e. C+L=A).
Using Microsoft excel, demonstrate the effects of the following transactions on the accounting
equation, and prepare the resultant balance sheet as at 31" July, 2020,
1 July started business with cash
30,000
2 Sales on cash
50,000
4 Stock of materials paid by cash
10,000
5 Paid cash into bank
20,000
7 Withdrew cash for office use
10,000
8 Loan received by cash
20,000
10 Sales of goods received cheque
30,000
19 Cash sales
80,000
21 Debtor paid us by cash
50,000
30 Sales, received cheque
40,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e92433b-3853-4e92-b6cb-00d532e24d15%2F311ce847-559e-4dc6-993f-5b707e8781bb%2Fm5wts0a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
The whole of financial accounting is based upon the very simple idea that, resources supplied by
the owner of the business plus liabilities that must be settled at a future date must be equal to the
resources in the business. It follows that the capital plus liabilities of the entity must be equal to
assets of the entity expressed as: Capital + Liabilities = Assets (i.e. C+L=A).
Using Microsoft excel, demonstrate the effects of the following transactions on the accounting
equation, and prepare the resultant balance sheet as at 31" July, 2020,
1 July started business with cash
30,000
2 Sales on cash
50,000
4 Stock of materials paid by cash
10,000
5 Paid cash into bank
20,000
7 Withdrew cash for office use
10,000
8 Loan received by cash
20,000
10 Sales of goods received cheque
30,000
19 Cash sales
80,000
21 Debtor paid us by cash
50,000
30 Sales, received cheque
40,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,