Problem

Six transactions of Brigal Company, a corporation, are summarized below in equation form,...

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

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search