Six transactions of Brigal Company, a corporation, are summarized below in equation form, with each of the six transactions identified by a letter. For each of the transactions (a) through (f) write a separate statement explaining the nature of the transaction. For example, the explanation of transaction (a) could be as follows: Purchased furniture for cash at a cost of $800.
Assets | = | Liabilities | + | Owners’ Equity | |||||||||
| Cash | + | Accounts Receivable | + | Land | + | Building | + | Furniture | = | Accounts Payable | + | Capital Stock |
Balances (a) | $9,000 -800 |
| $30,000 |
| $40,000 |
| $90,000 |
| $10,000 +800 |
| $30,000 |
| $149,000 |
Balances (b) | $8,200 +500 |
| $30,000 -500 |
| $40,000 |
| $90,000 |
| $10,800 |
| $30,000 |
| $149,000 |
Balances (c) | $ 8,700 -3,000 |
| $29,500 |
| $40,000 |
| $90,000 |
| $10,800 +5,000 |
| $30,000 +2,000 |
| $149,000 |
Balances (d) | $ 5,700 -2,000 |
| $29,500 |
| $40,000 |
| $90,000 |
| $15,800 |
| $32,000 -2,000 |
| $149,000 |
Balances (e) | $ 3,700 +10,000 |
| $29,500 |
| $40,000 |
| $90,000 |
| $15,800 |
| $30,000 |
| $149,000 + 10,000 |
Balances (f) | $13,700 |
| $29,500 |
| $40,000 |
| $90,000 |
| $15,800 + 3,000 |
| $30,000 +3,000 |
| $159,000 |
Balances | $13,700 |
| $29,500 |
| $40,000 |
| $90,000 |
| $18,800 |
| $33,000 |
| $159,000 |
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