Question

Please answer the following question

Chapter t Rnanclal Statements Personal Accounting AP-17A (0e0 Indicate whether the account balances will increase or decrease and by how much, based orn each transaction. The first one has been done for you. Always ensure the accounting equation is balanced Assets Liabilities+Net Worth Explanation t. Purchased a new television for $700 on credit 2. Purchased $100 worth of gas on credit 3. Made a 5850 car loan payment 4 Purchased a chandeller for $200 cash 5 Prepaid three months of rent with $3.300 cash. 6. Received a cash gift of $500 7. Used up one of three months of prepaid rent &.Paid interest of $50, in cash, on the car loan . Received a phone bill for $110. Analysis The net worth account is only updated at the end of an accounting period. Revenue and expense accounts, and the net worth account, track changes in net worth during the period. For each transaction that affects net worth, determine whether a revenue, expense, or net worth is used to track the change 23

Answer 1

AP-17A)
SERIAL	ASSETS	Equal to	LIABILITIES+	NET WORTH	explanation of net worth
1	700	Equal to	700
2		Equal to	100	-100	expense
3	-850	Equal to	-850
4	200 ,-200	Equal to
5	3300, -3300	Equal to
6	500	Equal to		500	revenue
7	-1100	Equal to		-1100	expense
8	-50	Equal to		-50	expense
9		Equal to	110	-110	expense
Total	-800	Equal to	60	-860	Net Worth
G. Total	-800	Equal to	-800