Explanation Accounting Equation : Accounting equation refers to the equation where total assets of a business is reported as equal to the sum of total liabilities and stockholders’ equities . Any financial business transaction are analysed on the basis of this accounting equation. For each and every financial business transaction, the accounting equation remains in balance. The formula of the accounting equation is depicted as below; Assets = Liabilities + Stockholders’ Equities The effects of all the transactions on the accounting equation are as given below: Serial Number Transaction Asset Liability Owner’s equity 1. Amount paid for utilities ( − ) $2,100 ( − ) $2,100 2. Amount for performing service on account ( + ) $10,500 ( + ) $10,500 3. Amount received from customers ( + / − ) $6,500 4. Salary paid to employees ( − ) $4,500 ( − ) $4,500 5. Amount paid to creditor’s account ( − ) $8,000 ( − ) $8,000 6

LooseLeaf for College Accounting: A Contemporary Approach

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Chapter 2, Problem 3E

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Determine the effects of transactions on the accounting equation.

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Chapter 2, Problem 2E

Chapter 2, Problem 4E

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Chapter 2 Solutions

LooseLeaf for College Accounting: A Contemporary Approach

Ch. 2 - What is a business transaction?Ch. 2 - Prob. 1.2SRQ Ch. 2 - Prob. 1.3SRQ Ch. 2 - Prob. 1.4SRE Ch. 2 - Prob. 1.5SRE Ch. 2 - Prob. 1.6SRA Ch. 2 - Prob. 2.1SRQ Ch. 2 - Prob. 2.2SRQ Ch. 2 - What information is included in the financial...Ch. 2 - Prob. 2.4SRE

Ch. 2 - Prob. 2.5SRE Ch. 2 - Prob. 2.6SRA Ch. 2 - Prob. 1CSR Ch. 2 - Prob. 2CSR Ch. 2 - Prob. 3CSR Ch. 2 - Prob. 4CSR Ch. 2 - Prob. 5CSR Ch. 2 - Prob. 1DQ Ch. 2 - Prob. 2DQ Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Describe the effects of each of the following...Ch. 2 - What is the fundamental accounting equation?Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ Ch. 2 - Prob. 11DQ Ch. 2 - Prob. 12DQ Ch. 2 - Prob. 1E Ch. 2 - Prob. 2E Ch. 2 - Prob. 3E Ch. 2 - Prob. 4E Ch. 2 - Prob. 5E Ch. 2 - Computing net income or net loss. The Computer...Ch. 2 - Prob. 7E Ch. 2 - Prob. 8E Ch. 2 - Prob. 9E Ch. 2 - Preparing a statement of owners equity and a...Ch. 2 - Analyzing the effects of transactions on the...Ch. 2 - Prob. 2PA Ch. 2 - Prob. 3PA Ch. 2 - The following equation shows the transactions of...Ch. 2 - Prob. 1PB Ch. 2 - Prob. 2PB Ch. 2 - Prob. 3PB Ch. 2 - Prob. 4PB Ch. 2 - The following account balances are for William...Ch. 2 - Richard Harris opened a gym and fitness studio...Ch. 2 - Prob. 1MF Ch. 2 - Prob. 2MF Ch. 2 - Prob. 3MF Ch. 2 - How does an accounting system help managers...Ch. 2 - Prob. 1ED

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