3-Transactions made by Virmari & Co., a public accounting firm, for the month of

Question

3-Transactions made by Virmari & Co., a public accounting firm, for the month of August are shown below. (10 marks) 1.The owner invested $25,000 cash in the business 2.The company purchased $7,000 of office equipment on credit. 3.The company received $8,000 cash in exchange for services performed. 4.The company paid $850 for this month's rent. 5.The owner withdrew $1,000 cash for personal use. Instruction: Prepare a tabular analysis which shows the effects of these transactions on the expanded accounting equation. Marking scheme: (5 marks) Proper Accounting equation (1 mark each) (5 marks)Recording transaction.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Assets =   Liabilities +   Equities 1) Cash 25,000 Capital 25,000 2) Cash 25,000, Equipment 7,000 Accounts Payable 7,000 Capital 25,000 3) Cash 33,000, Equipment 7,000 Accounts Payable 7,000 Capital 25,000, Retained Earnings 8,000 4) Cash 32,150, Equipment 7,000 Accounts Payable 7,000 Capital 25,000, Retained Earnings 7,150 5) Cash 31,150, Equipment 7,000 Accounts Payable 7,000 Capital 24,000, Retained Earnings 7,150

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