The following six transactions of Ajax Moving Company, a corporation, are summarized 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 equipment for cash at a cost of $3,200.
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| = | Liabilities | + | Owners’ Equity |
| Cash | + | Accounts Receivable | + | Land | + | Building | + | Equipment | = | Accounts Payable | + | Capital Stock |
Balances (a) | $26,000 -3,200 |
| $39,000 |
| $45,000 |
| $110,000 |
| $36,000 +3,200 |
| $42,000 |
| $214,000 |
Balances (b) | $22,800 +900 |
| $39,000 -900 |
| $45,000 |
| $110,000 |
| $39,200 |
| $42,000 |
| $214,000 |
Balances (c) | $23,700 -3,500 |
| $38,100 |
| $45,000 |
| $110,000 |
| $39,200 +13,500 |
| $42,000 +10.000 |
| $214,000 |
Balances (d) | $20,200 -14,500 |
| $38,100 |
| $45,000 |
| $110,000 |
| $52,700 |
| $52,0001-4,500 |
| $214,000 |
Balances (e) | $ 5,700 + 15,000 |
| $38,100 |
| $45,000 |
| $110,000 |
| $52,700 |
| $37,500 |
| $214,000 + 15,000 |
Balances (f) | $20,700 |
| $38,100 |
| $45,000 |
| 3110,000 |
| 352,700 -7,500 |
| $37,500 +7,500 |
| 3229,000 |
Balances | $20,700 |
| $38,100 |
| $45,000 |
| $110,000 |
| S60.200 |
| $45,000 |
| $229,000 |
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