Use the balance sheet equation format to enter these transactions into the books

Question

Use the balance sheet equation format to enter these transactions into the books of Essex Company. Enter the transactions into the equation one transaction at a time, beginning with "a". Enter transaction "d" in two parts: d.1. to the sale and d.2. to record the cost of the inventory sold. Collections of accounts receivable, $92,000. Payment of accounts payable, $30,000. Acquisition of inventory, $25,000, on open account. Sale of merchandise, $33,000 on open account and $35,000 for cash. The sold merchandise cost Essex Company $27,000 of $1,4000 in June Declared and paid cash dividends of $26,000.

Explanation / Answer

Assets Liabilities Stockholder's Equity Cash AR Inventory Equip AP Paid in Capital Retained Earnings a 92000 -92000 92000 b -30000 -30000 -30000 c 25000 25000 d 33000 -25000 -25000 8000 d2 35000 -27000 8000 e -1400 f -26000 -26000 Note: entry number d has 2 transactions. Hence they are entered separately and numbered as d and d2

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