Kennedy Chang recently started a business. During the first few days of operatio

Question

Kennedy Chang recently started a business. During the first few days of operation,Mr.Chang transferred 30,000 from his personal account into a business account for a company he named Chang Enterprises. Chang Enterprises borrowed 40,000 from First Bank.Mr. Chang’s father in-law,Jim Harwood, invested 64,000into the business for which he receive at 25 percent ownership interest. Chang Enterprises purchased a building from Morton Realty Company. The building cost 120,000 cash. Chang Enterprises earned 28,000 in revenue from the company’s customers and paid its employees 25,000 for salaries expense.

Explanation / Answer

Mr. Chang (personal account)
Decreased by $30,000 (Deposit)

Chang Enterprise
Increased by $30,000 (Deposit)
Increased by $30,000 (Borrowed)
Increased by $64,000 (Invested)
Decreased by $120,000 (Purchase Building)
Increased by $28,000 (Revenue)
Decreased by $25,000 (Salaries)

First Bank
Decreased by $40,000 (Loaned)

Jim Harwood
Decreased by $64,000 (Invested)

Morton Realty Company
Increased by $120,000 (Building)

Chang Enterprise Customers
Decreased by $28,000 (Paid for Services)

Chang Enterprise Employees
Increased by $25,000 (Salary)

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