Analyzing the effects of the transaction on the accounting equation. On September 1, Sarah Dodd opened...
Analyzing the effects of the transaction on the accounting equation.
On September 1, Sarah Dodd opened Tailor Made Tutoring Service.
Instructions
Analyze the following transactions. Use the fundamental accounting equation form to record changes in property, claims of editors, and owner's equity. (Use plus, minus, and equal signs.)
Transactions
1. The owner invested $36,000 in cash to begin the business.
2. Purchased equipment for $16,000 in cash.
3. Purchased $6,000 of additional equipment on credit.
4. Paid $3,000 in cash to creditors.
5. The owner made an additional investment of $6,000 in cash.
6. Performed services for $4,200 in cash.
7. Performed services for $3,650 on account.
8. Paid $2,600 for rent expense.
9. Received $2,500 in cash from credit clients.
10. Paid $3,150 in cash for office supplies.
11. The owner withdrew $5,000 in cash for personal expenses.
Analyze: Which transactions increased the company's debt? By what amount?
Homework Answers
Analysis of transaction:
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Analyzing the effects of the transaction on the
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