Chapter 3, Problem 6SEB

TRANSACTION ANALYSIS George Atlas started a business on June 1,20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.

(a ) Invested cash in the business, $7,000.

(b) Purchased equipment for cash, $900.

(c) Purchased equipment on account, $1,500.

(d) Paid cash on account for equipment purchased in transaction (c), $800.

(e) Withdrew cash for personal use, $1,100.

FOOT AND BALANCE T ACCOUNTS Foot and balance the T accounts prepared in Exercise 3-5B if necessary.