Zen began a new consulting firm on January 5. Following is a financial summary, including balances, for each of the company's first five transactions (using the accounting equation form). Assets = Liabilities + Equity + Office + Office = Accounts + Zen, Payable Transaction Cash + Accounts + Revenues Receivable Supplies Furniture Capital 1. 2. $ 0 + $ 0 3,000 $40,000 + $ 0 $ 0 + $40,000 + $ 38,000 + + + 1,000 40,000 + %3! 3. 30,000 + 3,000 8,000 1,000 40,000 + %3D 4. 30,000 + 6,000 3,000 8,000 1,000 40,000 + 6,000 %3D 5. 31,000 + 6,000 3,000 8,000 1,000 40,000 + 7,000 %3D I| || +
Identify the explanation from a through j below that best describes each transaction 1 through 5 above and
enter it in the blank space in front of each numbered transaction.
a. The company purchased office furniture for $8,000 cash.
b. The company received $40,000 cash from a bank loan.
c. The owner invested $1,000 cash in the business.
d. The owner invested $40,000 cash in the business.
e. The company purchased office supplies for $3,000 by paying $2,000 cash and putting $1,000 on credit.
f. The company billed a customer $6,000 for services provided.
g. The company purchased office furniture worth $8,000 on credit.
h. The company provided services for $1,000 cash.
i. The company sold office supplies for $3,000 and received $2,000 cash and $1,000 on credit.
j. The company provided services for $6,000 cash.
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