Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. The company purchased equipment for a new addition to its factory for $30,000, paying $3,000 in cash and signing a note due in six months for the remaining balance. How does this transaction affect the accounting equation?

Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. The company purchased equipment for a new addition to its factory for $30,000, paying $3,000 in cash and signing a note due in six months for the remaining balance. How does this transaction affect the accounting equation?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EA: A business has the following transactions: The business is started by receiving cash from an...

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Can someone please help me check my work on this? Aracel Engineering completed the following transactions in the month of June. J. Aracel, the owner, invested $240,000 cash, office equipment with a value of $10,000, and $77,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,900 cash for the premium on an 18-month insurance policy. The company provided services to a client and collected $8,700 cash. The company purchased $26,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $15,500. The company completed $17,500 of services for a client. This amount is to be received in 30 days. The company purchased $1,600 of additional office equipment on credit. The company completed $25,000 of services for a customer on…
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At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks. The company had the following transactions during April. April Haron Kadir invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000. The company purchased a portable building with $34,500 cash and moved it onto the land acquired on date 2nd. The company paid $5,000 cash for the premium on a two-year insurance policy. The company provided services to a client and immediately collected $4,600 cash. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700. The company completed $4,250 of services for a client. This amount is to be received within 30 days. The company purchased $950 of additional office equipment on credit. The company…
At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks. The company had the following transactions during April. April Haron Kadir invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000. The company purchased a portable building with $34,500 cash and moved it onto the land acquired on date 2nd. The company paid $5,000 cash for the premium on a two-year insurance policy. The company provided services to a client and immediately collected $4,600 cash. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700. The company completed $4,250 of services for a client. This amount is to be received within 30 days. The company purchased $950 of additional office equipment on credit. The company…
Ming Chen started a business and had the following transactions in June. Owner invested $68,000 cash in the company along with $29,000 of equipment in exchange for its common stock. The company paid $2,100 cash for rent of office space for the month. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). The company completed work for a client and immediately collected $1,600 cash. The company completed work for a client and sent a bill for $9,000 to be received within 30 days. The company purchased additional equipment for $6,100 cash. The company paid an assistant $3,000 cash as wages for the month. The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e. The company paid $10,000 cash to settle the liability created in transaction c. The company paid $1,100 cash in dividends to the owner (sole shareholder). Required:Complete the table using additions and subtractions to show the dollar effects…
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