Analyze each of the following transactions by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each. January 1 Purchased equipment for $33,000 cash. Estimated useful life is six years and salvage value is $7,920. January 2 Paid $6,600 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $260 cash for minor repair costs to equipment.

Analyze each of the following transactions by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each. January 1 Purchased equipment for $33,000 cash. Estimated useful life is six years and salvage value is $7,920. January 2 Paid $6,600 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $260 cash for minor repair costs to equipment.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2MC

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January 1	Purchased equipment for $33,000 cash. Estimated useful life is six years and salvage value is $7,920.
January 2	Paid $6,600 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value.
August 15	Paid $260 cash for minor repair costs to equipment.