Chat with AI
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958 Exercise 11
Determining the effects of transactions on the accounting equation.
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a "+" to indicate an increase and a "?" to indicate a decrease. The first transaction is entered as an example.
TRANSACTIONS
1. Owner invested $90,000 in the business.
2. Purchased $26,700 supplies on account.
3. Purchased equipment for $21,000 cash.
4. Paid $6,000 for rent (in advance).
5. Performed services for $7,800 cash.
6. Paid $2,160 for utilities.
7. Performed services for $10,500 on account.
8. Received $6,600 from charge customers.
9. Paid salaries of $4,500 to employees.
10. Paid $6,000 to a creditor on account.
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a "+" to indicate an increase and a "?" to indicate a decrease. The first transaction is entered as an example.
TRANSACTIONS
1. Owner invested $90,000 in the business.
2. Purchased $26,700 supplies on account.
3. Purchased equipment for $21,000 cash.
4. Paid $6,000 for rent (in advance).
5. Performed services for $7,800 cash.
6. Paid $2,160 for utilities.
7. Performed services for $10,500 on account.
8. Received $6,600 from charge customers.
9. Paid salaries of $4,500 to employees.
10. Paid $6,000 to a creditor on account.
Explanation
Verified
Verified
Fundamental accounting equation:
• In a...
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
