Question

ANTONELLI'S ACCOUNTING SERVICES Beginning Transaction 1 Transaction 2 Total Equity 1850 Zero Proof ASSETS LIABILITIES OWNER'S EQUITY AIR AR Total AVP Total Antonelli Cash Jones Trave F. Leonel Supplies Equipment Assets Best Office astside Ney Bank Loan Liabilities Capital 275 300 350 700 900 2525 175 500 675 1850 2000 4525 2 000 2675 -1300 1 300 4525 2675 200 .200 T L 4525 2675 150 .900 3775 2675 500 4275 2675 1 850 1 850 Transaction 3 1 850 Transaction 4 1 850 1 850 Transaction 5 225 T 2 900 1 850 -50 2 850 1 850 1 850 2 850 (750) (250) (475) (425) (1025) (800) (100) 25 (335) (335) Transaction 6 4 275 DDT4 275 Transaction 7 4 275 Transaction 8 .600 3675 Transaction 9 3675 Transaction 10 200 500 4375 Transaction 11 4375 Transaction 12 TTT4375 Ending 925 600 850 700 1300| 4375 2625 1 850 1 850 2625 - 125 2 500 360 360 2 860 2860 1 850 1 850 1850 225 2275 1850

I just want to know if I have balanced this correctly and not made any mistakes while inputting it. Thanks

Answer 1

All the transactions have income/expense element missing. Owner's equity comprises of capital, net income, drawings, increase/decrease in equity. Have listed the corrections below-

1. Transaction 4- 750 loss (900-150) will be deducted from owner's equity. (part of net income)

2. Transaction 5- 500 to be added to Owner's equity since it is sales. (part of net income)

3. Transaction 6- 225 to be deducted from Owner's equity since it is purchase. (part of net income)

4. Transaction 7- 50 to be added in owner's equity since it is purchase return. (part of net income)

5. Transaction 8- 600 to be deducted from Owner's equity since it is drawings.

6. Transaction 9- Accounting Entry Loan Payable Dr. Bank A/c Credit. While the liability has been reduced, you also need to reduce the bank/cash balance as the case may be.

7. Transaction 10- 700 to be added to Owner's equity since it is sales. (part of net income)

8. Transaction 11- 125 to be deducted from Owner's equity (part of net income)

9. Transaction 12- 360 to be deducted from Owner's equity since it is expense. (part of net income)

Let me know in case you have any doubt. Don't forget to provide rating