Chapter 1, Problem 11QS

Identifying effects of transactions using accounting equation-Assets and Liabilities P1

Create the following table similar to the one in Exhibit 1.9

	Assets		=	Liabilities+	Equity
Cash +	Supplies +	Equipment +	Land -	Accounts+

PayableCommon −

StockDividends+Revenues-Expenses

Then use additions and subtractions to show the dollar effects of each transaction on individual items of the accounting equation.

1. The owner invested $15,000 each in the company in exchange for its common stock.
2. The company purchased supplies for $500 cash.
3. The owner invested $10.000 of equipment in the company in exchange for more common stock.
4. The company purchased $200 of additional supplies on credit.
5. The company purchased land for $ 9,000 cash.