Chapter 1, Problem 11E

Identifying effects of transactions on the accounting equation

The following table shows the effects of five transactions (1 through 5) on the assets, liabilities, and equity of Mulan’s Boutique

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

1. a. The company purchased $1,000 of office supplies on credit.
2. b. The company collected $1,900 cash from an account receivable.
3. c. The company sold Land for $4,000 cash.
4. d. The company paid $1,000 cash in dividends to shareholders
5. e. The company purchased office supplies for $1,000 cash.
6. f. The company purchased land for $4,000 cash.
7. g. The company billed a client $1,900 for services provided
8. h. The company paid $1,000 cash toward an account payable.
9. i. The owner invested $1,900 cash in the business in exchange for its common stock.
10. j. The company sold office supplies for $1,900 on credit.