Check out this Transactions That Change the Accounting Equation Problem I:( 1 point each, 5...
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Accounting
Check out this Transactions That Change the Accounting Equation
Problem I:( 1 point each, 5 points possible)
For each of the following business transactions, add or subtract the amounts to update total assets, liabilities, or owners equity. Continue the running balance for each transaction starting with the example figures given below:
Example: Ms. Smith, owner, invested $ 15,000 in a dry-cleaning business:
Bought $ 2,000 worth of equipment, paying cash.
Borrowed $ 7,500 from Schaumburg State bank.
Bought $ 450 worth of supplies, paying cash.
Bought a truck for $ 12,000, paying cash.
Made a $ 1,500 payment on loan to Schaumburg State bank.
Assets
= Liabilities
+ O/E
Beginning Balances
$ 14, 250
$ 4,250
$ 10,000
Ms. Smith Example:
Running Balance
+ 15,000 $ 29,250
--------- $ 4,250
+ 15,000 $ 25,000
1.
$29,250+ $2,000=$31,250
$4,250
2000+27000
2.
$31,250 +$7,500=$38750
+$7,500
7500+29000
3.
$38,750-$450=$38300
$11,750
29000-450=28,550
4.
$38300 -$12,000=$26300
$11,750
5.
26300
$11,750-$1,500=10,250
Final Balance
$26,300
$10,250
$25,000
Answer & Explanation
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