Question

Cash Opening Balances - November 1, 2018 $ 990 Accounts Receivable $1,000 Prepaid Expenses $ 310 Machinery Accounts Payable $ 1,460 Notes Payable $0 Irwin, Captial $ 4,140 $ 3,300 Required a) Indicate whether the account balances will increase or decrease and by how much, based on each transaction during November. The first transaction has been completed for you. Always ensure that the accounting equation is balanced. Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values. Where a transaction affects two accounts in the same category, enter the positive amount in the first space provided and enter the negative amount in the second. Transaction Assets Liabilities Owner's Equity 1) Borrowed $10,400 from the bank. 2) Purchased machinery for $6,100 cash. 3) Billed clients $3,570 for completed services. Due in 30 days... 4) Paid $1,090 cash for regular maintenance on the machine. 5) Collected $2,380 from clients who owed money. 6) Paid four months' rent of $3,400 in advance. 7) Recorded $2,350 of cash sales for the month. 8) Paid $630 owed to a supplier.

Answer 1

TRANSACTION	ASSET	LIABILITIES	EQUITY
1	+10000	+10000
2	+6100
	-6100
3	+3570		+3570
4	-1090		-1090
5	+2380
	-2380
6	+3400
	-3400
7	+2350		+2350
8	-630	-630