College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

Exercise 8

Using T accounts to record transactions involving assets, liabilities, and owner's equity.
The following transactions occurred at several different businesses and are not related.
INSTRUCTIONS
Analyze each of the transactions. For each transaction, set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs to show the increases and decreases.
TRANSACTIONS
1. A firm purchased equipment for $16,000 in cash.
2. The owner, Angie Carvajal, withdrew $4,000 cash.
3. A firm sold a piece of surplus equipment for $3,000 in cash.
4. A firm purchased a used delivery truck for $12,000 in cash.
5. A firm paid $3,600 in cash to apply against an account owed.
6. A firm purchased office equipment for $5,000. The amount is to be paid in 60 days.
7. Chuck Vinson, owner of the company, made an additional investment of $20,000 in cash.
8. A firm paid $1,500 by check for office equipment that it had previously purchased on credit.
Analyze: Which transactions affect liability accounts?