Effect of Transactions on Accounting Equation Jay Pembroke started a business. During...
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Effect of Transactions on Accounting Equation Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. a. Invested cash in business, $17,500. b. Bought office supplies for $4,800 : $2,100 in cash and $2,700 on account. c. Paid one-year insurance premium, $1,300. d. Earned revenues totaling $2,800:$1,000 in cash and $1,800 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,350. f. Paid office rent for the month, $900. g. Withdrew cash for personal use, $150. Required: Demonstrate that the accounting equation has remained in balance. Cash Accounts receivable Office supplies Prepaid insurance Total Assets Accounts payable Jay Pembroke, capital Jay Pembroke, drawing Service fees Rent expense Total Liabilities and Owner's Equity
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