eBook Show Me How Calculator Print Item Effects Of Transactions (Balance Sheet A
ID: 2330831 • Letter: E
Question
eBook Show Me How Calculator Print Item Effects Of Transactions (Balance Sheet Accounts) John Sullivan started a business. During the first month (February 20--), the following transactions occurred. Sh the effect of each transaction on the accounting equation: Assets Liabilities + Owner's Equity. After each transaction, show the new totals. Use the minus sign to indicate a decrease or reduction in the account. If an amount box doesn't require an entry, leave it "blank" or enter "O" Assets Liabilities Owner's Equity a. Invested cash in the business, $26,580. Bal. b. Bought office equipment on account, $7,000 Bal c. Bought office equipment for cash, $1,780. (Enter the change in Cash on the first line and the change in Equipment on the second line) Bal. d. Paid cash on account to supplier in transaction (b), $2,570. Bal.Explanation / Answer
ASSETS = LIABILITIES + OWNERS EQUITY
a.Invested cash in the business $26,580
$26580
0
$26580
Bal.
$26580
0
$26580
b.Bought office equipment on account $ 7000
$7000
$7000
0
Bal.
$ 33580
$7000
$26580
c.Bought office equipment for cash $1780
cash
-$1780
0
0
equipment
$1780
0
0
Bal.
$ 33580
$7000
$26580
d.Paid cash on account to supplier in transaction (b), $2570
-$2570
-$2570
0
Bal.
$ 31010
$ 4430
$26580
ASSETS = LIABILITIES + OWNERS EQUITY
a.Invested cash in the business $26,580
$26580
0
$26580
Bal.
$26580
0
$26580
b.Bought office equipment on account $ 7000
$7000
$7000
0
Bal.
$ 33580
$7000
$26580
c.Bought office equipment for cash $1780
cash
-$1780
0
0
equipment
$1780
0
0
Bal.
$ 33580
$7000
$26580
d.Paid cash on account to supplier in transaction (b), $2570
-$2570
-$2570
0
Bal.
$ 31010
$ 4430
$26580
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