Chapter 2 Homework 2 Exercise 2.5 Determining the effects of transactions on the

Question

Chapter 2 Homework 2 Exercise 2.5 Determining the effects of transactions on the accounting equation. LO 2-1, 2-2,23 The Copy Center had the transactions listed below during the month of June. TRANSACTIONS 1. John Amos started the business with a cash investment of $45,000 2. Purchased equipment for $14,500 on credit 3. Performed services for $3,600 in cash 4 Purchased additional equipment for $3,100 in cash S. Performed services for $4,300 on credit 6. Paid salaries of $3,700 to employees 7 Received $1,700 cash from charge account customers 8. Paid $7.000 to a credtor on account Show how each transaction would be recorded in the accounting equation (Enter decreases to account balances with a minus sign Jehn Amos C Prev 2o6 Next 0

Explanation / Answer

Transactions:

Assets = Liabilities + Owner's equity Cash + Account receivable + Equipment = Account payable + John amos's capital + Revenue - Expense 1. $45000 $45000 2. $14500 $14500 3. $3600 $3600 4. -$3100 $3100 5. $4300 $4300 6. -$3700 $3700 7. $1700 -$1700 8. -$7000 -$7000 End bal $36500 + $2600 + $17600 = $7500 + $45000 + $7900 - $3700

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.