Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity....

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Question

Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity....

Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity.

1. Purchase equipment for $43,000 in cash
2. Receive payment of $11,000 owed by a customer
3. Buy $14,000 worth of manufacturing supplies on credit
4. Issue $70,000 in stock

What is the net change in Total Equity?

business accounting

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Answer 1

Answer #1

Accounting equation

	Assets	=	Liabilities	+	equity
1	43000 -43000		NA		NA
2	11000 -11000		NA		NA
3	14000		14000		NA
4	70000				70000

So Net change in total equity = $70000

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Answer 2

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