Question

The following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T accounts. Transactions: 1. Hunter Thompson, an owner, made an additional investment of $21,000 in cash. 2. A firm purchased equipment for $10,000 in cash. 3. A firm sold some surplus office furniture for $1,700 in cash 4. A firm purchased a computer for $3,700, to be paid in 60 days. . A firm purchased office equipment for $11,200 on credit. The amount is due in 60 days. 6. Nancy Fowler, owner of Fowler Travel Agency, withdrew $6,000 of her original cash investment. 7. A firm bought a delivery truck for $37,000 on credit, payment is due in 90 days. 8. A firm issued a check for $3,500 to a supplier in partial payment of an open account balance. Analyze: Select the transactions that directly affected an owner's equity account. T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

Answer 1

1)
	Cash				Hunter Thompson,Capital
	21,000					21,000
2)	Equipment				Cash
	10,000					-10,000
3)	Cash				office Furniture
	1,700					-1,700
4)	Computer (office Equipment)				Accpunts payable
	3,700					3,700
5)	office Equipment				Accounts payable
	11,200					11,200
6)	Hunter thompson,Withdrawings				Cash
	6,000					-6,000
7)	Truck				Accounts payable
	37,000					37,000
8)	Accounts payable(supplier)				Cash
	-3,500					-3,500
2)
	Transaction 1		Yes
	Transaction 2		No
	Transaction 3		No
	Transaction 4		no
	Transaction 5		no
	Transaction 6		Yes
	Transaction 7		no
	Transaction 8		no