Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each...
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Accounting
Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, identify the accounts and imounts (including + or -) for each. an. 1 Purchased equipment for $38,000 cash. Estimated useful life is six years and salvage value is $9,120. an. 2 Paid $7,600 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. ug.15 Paid $300 cash for minor repair costs to equipment. Date Assets Liabilities + Equity Jan. 1 - + Cash Equipment [(-) decrease (-) decrease 38,000 38,000 + Jan. 2 (+) increase + + Consulting revenue Equipment Aug. 15 + Repairs expense Supplies Utilities expense
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