Question

ing the month, a company enters into the folowing transactions Buys $8,750 of supplies on account Pays $0,000 cash for new equipment Pays off $4.800 of accounts payable. Pays off $2.450 of notes payable. quired: Show the effect of these transactions account balances with a minus sign) on the basic accounting equation. (Enter any decreases to Liabilitie S Stockholders Equity b. b. Prepare the joumal entries that would be used to record the transactions (if no entry is required for transactionievent, seleet "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of supplies on account for 0,750,

Answer 1

Ans- A)-Transaction Analysis:-

	Current Assets	+	Non Current Analysis	=	Liabilities	+	Shareholders' Equity
A)-	Supplies $8,750	+		=	Accounts Payable $8,750	+
B)-	Cash ($6,900)	+	Equipment $6,900	=		+
C)-	Cash ($4,900)	+		=	Accounts Payable ($4,900)	+
D)-	Cash ($2,450)	+		=	Notes Payable ($2,450)	+
	Assets $1,400			=	Liabilities $1,400

Journal Entries

Date	Accounts Title and Explanation	Debit ($)	Credit ($)
A)-	Supplies A/c Dr.	8,750
	Accounts Payable A/c		8,750
	(To record the purchase of supplies)
B)-	Equipment A/c Dr.	6,900
	Cash A/c		6,900
	(To record equipment purchased)
C)-	Accounts Payable A/c Dr.	4,900
	Cash A/c		4,900
	(To record accounts payable paid)
D)-	Notes Payable A/c Dr.	2,450
	Cash A/c		2,450
	(To record notes paid)