Question

Chapter 2: Transaction Analysis: Debit and Credit Rules APPLY WHAT YOU HAVE LEARNED 2-1. Accounting equation. Use the following table to show the effects of transactions 1-10. Use + or -- and the dollar amount to show the effects. If a transaction affects only one cell, show the dollar amount and both + and - The transactions describe events for Copymaster Corporation, a photocopying business. Assets Liabilities Equity 10. 1. Shareholders invested $5,000 cash to begin the business. 2. Copymaster bought a copying machine for $1,500 cash. 3. Copymaster sold copies to customers for $500 cash. 4. Copymaster produced copies for Fellows Corporation, its customer. The total sale amount was $1,200. Copymaster agreed to bill Fellows for the sale at the end of the month. 5. Copymaster paid employees $600. 6. Copymaster bought supplies for $300. 7. Copymaster paid rent of $700. 8. Copymaster paid utilities of $200. 9. Copymaster bought office furniture for $500. 10. Copymaster had an unpaid phone bill at month-end for $100.

Answer 1

Assets	Liabilities	Equity
1.+$5,000		+$5,000
2.+$1,500,-$1,500
3.+$500		+$500
4.+$1,200		+$1,200
5.-$600		-$600
6.+$300	+$300
7.-$700		-$700
8.-$200		-$200
9.+$500	+$500
10.	+$100	+$100