Question

Analyze the following transactions and show their effects on the basic accounting equation. a. C. Received $153,000 from investors buying shares in the company. b. Bought equipment for $52,700. Paid half in cash, with the remainder to be paid in six months. Bought inventory costing $47,700, on account. d. (ii.) Sold inventory costing $37,700 to customers, (i.) on account, for $54,700. e. Made a payment of $1,000 on accounts payable. f. Borrowed $27,700 from a bank. The interest on the loan is 6% per year. g. Depreciated equipment by $1,160. h. Paid $780 for supplies to be used in the future. i. Paid $250 to the power company for electricity used during the period. j. Declared and paid dividends of $8,100.

Answer 1

Jowenal Entries- Bank Alc $ 153000 $153000 (b Dr. or To share capital Alc Equipment Alu $52700 To cash To Supplies for Equipment Purchases Arc Dr $47,700 To supplier ac $47,700 $26350 $26350 (c) (d). $54700 Customers All Dr. To sales All $54700 (e ) supplies All Dr To Bank $ 1000 $ 1000 Bank Alc bri To Borrowings $27700 $27700 (82 Depreciation A/c Dr To Equipment $ 1160 $1160 th). Advance to suppliey Alcor To Bank $780 $780 (۲) . Eslectricity change or To Bank $250 $250 (4) profit & Loss All Dr $8100 To Dividend payable $ 2100 Dr. Dividend payable To Bank $ B100 $ 8100 O REDMI NOTE 5 PRO MI DUAL CAMERA 2020/9/18 01:12