Question

View Policies Current Attempt in Progress Presented below are eight business transactions. Indicate the effect of each transaction on each element of the accounting equation. (a) Purchased $283 of supplies on account. (b) Performed $457 of services on account. (c) Paid $325 of operating expenses. (d) Paid $283 cash on account for the supplies purchased in item (a) above. (e) Invested $999 cash in the business. (f) Owner withdrew $425 cash. (g) Hired an employee to start working the following month. (h) Received $457 from a customer who had been billed previously in item (b) above. 00) Purchased $448 of equipment in exchange for a note payable. Use the below format, in which the first one has been done for you as an example: (If a transaction causes a decrease in Assets, or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity ite was reduced. See Illustration 1-13 for example.)

Answer 1

	Accounting Equation
	Total Assets		=	Total Liabilities		+	Total Shareholders' Equity
a)	Supplies	$283	=	Accounts Payable	$283	+
b)	Accounts Receivable	$457	=			+	Sales Revenue	$457
c)	Cash	($325)	=			+	Operating Expenses	($325)
d)	Cash	($283)	=	Accounts Payable	($283)	+
e)	Cash	$999	=			+	Capital Stock	$999
f)	Cash	($425)	=			+	Drawings	($425)
g) *	No Effect		=	No Effect		+	No Effect
h)	Cash	$457	=			+
	Accounts Receivable	($457)	=			+
i)	Equipment	$448	=	Notes Payable	$448	+
	Total Assets	$1,154	=	Total Liabilities	$448	+	Total Shareholders' Equity	$706
	** $1,154 = $448 + $706
* It is not a transaction and it does not have any finacial impact so it is not recorded.