Question

Using the Transaction Analysis table provided, analyze the effect of the transactions listed below on the extended Accounting Equation. Andy Johnson started a consulting business. The foliowing transactions occurred during the month of May 2019, they are given below. 

 a. Andy Johnson invested $70,000 cash in the company

 b. Rent of $3,000 was paid for the month

 c The company purchased $1.200 of office supplies

 d Office equipment of $1,700 was purchased on credit

 e. The company provided service for a client and sent a bill for $3,000

 f. The company paid $500 cash for printing an advertisement of the office's opening 

 g. Andy Johnson withdrew $3.200 cash from the company for personal use. 

 h. The company provided service for a client and immediately collected a $4.000 cash fee 

 I. The company paid $1.800 cash for the office secretary's salaries 

Answer 1

	Assets		Liabilities		Owners' Equity
	Cash	Receivables	Supplies	Equipment		Payables		Capital	Drawings	Revenues	Expenses
a	$             70,000							$          70,000
b	$             (3,000)										$            3,000
c	$             (1,200)		$            1,200
d				$              1,700		$              1,700
e		$              3,000								$           3,000
f	$                (500)										$                500
g	$             (3,200)								$              3,200
h	$               4,000									$           4,000
i	$             (1,800)										$            1,800
Total	$             64,300	$              3,000	$            1,200	$              1,700		$              1,700		$          70,000	$              3,200	$           7,000	$            5,300
Total assets			$            70,200
Total liabilities & Equity			$            70,200