Question

Q1: HappyHome purchases office supplies for 3,500 SAR with a check.

Record financial impacts of this purchase transaction using the pertinent T-accounts.

Q2:HappyHome is a factory specialized in manufacturing some ranges of home appliances. A venture capitalist invests 120,000 SAR in HappyHome on January 10, 2018, which HappyHome deposits into its bank account. In exchange, the investor receives HappyHome common stock at $1 per share.

Show financial impacts of this purchase transaction using T-accounts.

Answer 1

Solution-1
Office Supplies
Detail	Debit	Detail	Credit
Account Payable	3500 SAR	Balance	3500 SAR
	3500 SAR		3500 SAR
Account Payable
Detail	Debit	Detail	Credit
Balance	3500 SAR	Office Supplies	3500 SAR
	3500 SAR		3500 SAR
Solution-2
Common Stock
Detail	Debit	Detail	Credit
Balance	120000SAR	Cash	120000SAR
	120000SAR		120000SAR
Cash
Detail	Debit	Detail	Credit
Common Stock	120000SAR	Balance	120000SAR
	120000SAR		120000SAR