Analyzing Transactions Prepare a table to summarize the following transactions as they affect the accounting equation....

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Question

Analyzing Transactions Prepare a table to summarize the following transactions as they affect the accounting equation. 1. Ser

Supplies Accounts Payable Note Pays fal. 50,000 1.365 Total and Share outy

business accounting

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Answer 1

Answer #1

Journal entries that would have been posted for above transaction:

Journal entry
	Dr.	Cr.
Accounts receivable	1530
services revenue		1530
(services rendered on credit)

Supplies	1365
Accounts Payable		1365
(supplies purchased on credit)

Cash	750
Services Revenue		750
(services given and cash earned)

equipment	4240
cash		4240
(asset purchased for cash)

Cash	2500
Notes Payable		2500
(Notes issued)

Cash	890
Accounts Receivable		890
(cash collected from debtors)

Land	50000
Capital Stock		50000
(Land purchased in exchange for capital)

Salaries	4000
cash		4000
(cash paid for salaries)

Accounts payab;e	500
cash		500
(payment made for creditors)

based on above entries, let;s populate below table

	Assets					=	Liabilities		+	Shareholder's equity
	Cash	A/R	Equipment	Land	Supplies		A/P	Notes Payable		Capital Stock	Retained earnings
1		1530									1530	Service revenue
2					1365		1365
Bal		1530			1365		1365				1530
3	750										750	Service revenue
Bal	750	1530			1365		1365				2280
4	(4240)		4240
bal	(3490)	1530	4240		1365		1365				2280
5	2500							2500
Bal	(990)	1530	4240		1365		1365	2500			2280
6	890	(890)
bal	(100)	640	4240		1365		1365	2500			2280
7				50000						50000
bal	(100)	640	4240	50000	1365		1365	2500		50000	2280
8	(4000)										(4000)	Salary Expense
bal	(4100)	640	4240	50000	1365		1365	2500		50000	(1720)
9	(500)						(500)
bal	(4600)	640	4240	50000	1365		865	2500		50000	(1720)
Total Assets		51645						Total Liab +shareholder's equity		51645

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Answer 2

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