Accounting equation : Accounting equation is a mathematical representation of the relation between assets, liabilities, and equity. According to this relation, the total assets are equal to the sum of liabilities and equity. To indicate: the accounting equation table for the given transactions.

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Chapter 1, Problem 11QS

Summary Introduction

Concept Introduction:

Accounting equation:

Accounting equation is a mathematical representation of the relation between assets, liabilities, and equity. According to this relation, the total assets are equal to the sum of liabilities and equity.

To indicate: the accounting equation table for the given transactions.

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The following transactions were completed by the company: a. The owner invested $17,600 cash in the company. b. The company purchased supplies for $1,150 cash. c. The owner invested $11,300 of equipment in the company in exchange for more common stock. d. The company purchased $330 of additional supplies on credit. e. The company purchased land for $10,300 cash. Required: Enter the impact of each transaction on individual items of the accounting equation. Note: Enter decreases to account balances with a minus sign. a. b. Balance after a and b C. Transactions Number Balance after c d. Balance after d e. Balance after e Cash 0 0 + 0 + + + + + + 0 + + Assets Supplies 0 0 + Equipment + 0 + + + 0 + + + + + + 0 0 + 0 + + + + 0 + + + Land 0 0 = II 0 11 11 11 0 = 11 || 11 || Liabilities + Accounts Payable 0 + + 0 + + + 0 + + 0 + + + Common Stock 0 0 0 0 I - - 1 I 1 Equity Dividends 0 + 0 + + + + 0 + + + + 0 + Revenue 0 0 0 0 - T - I I F Expenses 0 0 0 0

a. The owner invested $16,400 cash in the company in exchange for its common stock. b. The company purchased supplies for $850 cash. c. The owner invested $10,700 of equipment in the company in exchange for more common stock. d. The company purchased $270 of additional supplies on credit. e. The company purchased land for $9,700 cash. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) a b. Bal. C Bal d. Bal. e. Bal. Cash $ 16,400 ✦ (850)+ 15,550 15,550 + + + D 15,550 (9,700) + 5,850 + + Supplies $ 850 850 850 850 850 Assets + + + + . + + + Equipment $ 0 10,700 10,700 10,700 10,700 Ⓡ + + + ✦ + + + + + Land $ + 0 0 0 9,700 9,700 S - M = - = = W = Answer is not complete. Liabilities Accounts Payable $ 0 + 270 + + + + 0 270 + 270 + + + Common Stock $ 16,400 16,400 16,400 16,400 16,400 - - - I - Dividends 0 0 0 0 Equil + +