Question

Analyzing Transactions

Prepare a table to summarize the following transactions as they affect the accounting equation.

1. Services provided on account of $1,530
2. Purchases of supplies on account for $1,365
3. Services provided for cash of $750
4. Purchase of equipment for cash of $4,240
5. Issuance of a promissory note for $2,500
6. Collections on account for $890
7. Sale of capital stock in exchange for a parcel of land; the land is appraised at $50,000
8. Payment of $4,000 in salaries and wages
9. Payment of open account in the amount of $500

If an account is unaffected by a transaction, enter "0". Use the minus sign to indicate decreases or negative balances.

Assets												=	Liabilities						+	Shareholders' Equity
#	Cash		Accounts Receivable			Equipment		Land		Supplies			Accounts Payable			Note Payable				Capital Stock		Retained Earnings
1	$		$			$		$		$			$			$				$		$
2
Bal.	$		$			$		$		$			$			$				$		$
3
Bal.	$		$			$		$		$			$			$				$		$
4
Bal.	$		$			$		$		$			$			$				$		$
5
Bal.	$		$			$		$		$			$			$				$		$
6
Bal.	$		$			$		$		$			$			$				$		$
7
Bal.	$		$			$		$		$			$			$				$		$
8
Bal.	$		$			$		$		$			$			$				$		$
9
Bal.	$		$			$		$		$			$			$				$		$
Total Assets			$										Total Liabilities and Shareholders' Equity

Answer 1

solution:

	ASSETS										LIABILITIES				Shareholders' Equity
	Cash	+	Accounts receivable	+	Equipment	+	Land	+	Supplies	=	Accounts payable	+	Notes payable	+	Capital	+	Retaied earnings
																		1			1530														1530
																		2									1365		1365
3	-750																-750
4	-4,240				4,240
5	2,500												2,500
6	890		-890
7							50,000								50,000
8	-4,000																-4,000
9	-500										-500
	-6,100	+	640	+	4,240	+	50,000	+	1,365	=	865	+	2,500	+	50,000	+	-3,220