Chapter 4, Problem 4.1E

Transaction Analysis. The following transactions are taken from the books of Miller Manufacturing.

1. a. Bought office equipment with cash, $30,000.
2. b. Bought supplies on credit from a vendor, $15,000.
3. c. Sold goods for cash, $40,000 (ignore the inventory and cost of goods sold entry of this transaction).
4. d. Bought raw materials from a supplier on account, $22,000.
5. e. Sold goods to customers on account, $65,000 (ignore the inventory and cost of goods sold entry of this transaction).
6. f. Purchased raw materials by issuing a note payable, $14,000.
7. g. Paid cash toward note payable balance, $4,000.
8. h. Received cash from customer to apply to credit account balance, $3,000.
9. i. Paid for accounting and legal fees in cash, $5,000
10. j. Paid salaries in cash, $12,000.

Show the effect of each transaction on assets, liabilities, and equity using the accounting equation.