Question

Record the following transactions following the format we used in the lecture. Each transaction has its own row. Do not total up the account balances after each transaction. Put a + or - to indicate if the amount is an increase or decrease, respectively. Use commas for thousands and millions. If an account is not used, put a 0 in the cell. You'll need to tab over to get to cells at far right. I did the first transaction for you. a. The owner invested $10,000 cash in the business. b. The company buys equipment on account for $15,000. c. The company provides services to a customer on account. The sales price is $5,000. d. The company collects $3,000 of the sale from c. above. e. The company purchases merchandise for cash of $3,000. f. The company pays $7,000 of the amount owed from b. above. Assets = Lic Cash A/R Equipment A/P Inventory o a. +10,000 0 0 o b.

Answer 1

Assets

= Liabilities

+ Equity

+ Revenue

Sr. No	Cash	A /R (Account Receivable )	Inventory	Equipment	A/P (Accounts Payable )	Owner's Capital	Revenue
a	+ 10,000	0	0	0	0	+ 10,000	0
b	0	0	0	+ 15,000	+15,000	0	0
c	0	+5,000	0	0	0	0	+5,000
d	+3,000	-3,000	0	0	0	0	0
e	-3,000	0	+3,000	0	0	0	0
f	-7,000	0	0	0	-7,000	0	0
Total	3,000	2,000	3,000	15,000	8,000	10,000	5,000

Explanantion for Each Ttransaction are as follow :

a. Owner Invested $ 10,000 in cash will reflect in cash and in iwner's capital

b Company has buys equipments on accounts for $ 15,000 will reflect in equipment and in Accounts Payable because equipment has been purhcased on account due to that payble will effected .

c. Company has provided sevices to the customer on account due to that accounts receivble get effected and due tot service ravanue has been generated so ravanue account get effected for the same.

d. Company collect $ 3,000 in cash from c . This will effected in increses of cash due tot that cash effected + and same will also effected in account receivbale due to decrease in the account receivable same will effected -.

e. Pucrhase of merchandise in cash will effect in cash as - becuase   cash has been decreased. Further mechandise is one type of consumable inventory due to that inventory has been increased due to that same will effected in invntory + .

f. Cash Payment has beenmade for owed from B. Due to that cash will decrease so efected in cash as - and account payable also get decrease because laibility of the same has been decreased to that extent due to that same will also effect - in acount payable.