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

Exercise 6

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, decide what accounts are affected and set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs before the amounts to show the increases and decreases.
TRANSACTIONS
1. James Walker, an owner, made an additional investment of $16,000 in cash.
2. A firm purchased equipment for $9,000 in cash.
3. A firm sold some surplus office furniture for $1,200 in cash.
4. A firm purchased a computer for $2,700, to be paid in 60 days.
5. A firm purchased office equipment for $10,200 on credit. The amount is due in 60 days.
6. Carol Rose, owner of Rose Travel Agency, withdrew $5,000 of her original cash investment.
7. A firm bought a delivery truck for $32,000 on credit; payment is due in 90 days.
8. A firm issued a check for $2,500 to a supplier in partial payment of an open account balance.
Analyze: List the transactions that directly affected an owner's equity account.