In this question interpret the effects of business transaction. You are to write a separate statement explaining the nature of the transaction from a to f. Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified byab letter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. Forexample, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200.ASSETSLIABILITIESOWNER'S EQUITYAccountReceivables +Building+ Equipment=Cash +Land+Account Payable+M.Sajad CapitalBalances$26,000$39,000$45,000$110,000$36,000$42,000$214,0003,200+ 3,200(a)Balances$22,800$39,000$45,000$110,000$39,200$42,000$214,000(b)+ 900900Balances$23,700$38,100$45,000$110,000$214,000$39,200+ 13,500$42,000+ 10,000- 3,500(c)Balances$20,20014,500$38,100$45,000$110,000$52,700$214,000$52,000- 14,500(d)$5,700$38,100$45,000$110,000$52,700$37,500$214,000+ 15,000Balance+ 15,000(e)Balances$20,700$38,100$45,000$110,000$52,700$37,500$229,0003,500+ 2,100+ 2,100(f)Balances$20,700$38,100$45,000$110,000$54,800$39,600$229,000Recording the effects of business transaction

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Description: In this question interpret the effects of business transaction. You are to write a separate statement explaining the nature of the transaction from a to f. Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each

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Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by abletter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. For example, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200. ASSETS LIABILITIES OWNER'S EQUITY Cash + Account Land+ Building+ Equipment= Account Payable+ M.Saljad Capital Receivables + $39,000 $110,000 Balances (a) Balances $26,000 - 3,200 $45,000 $42,000 $214,000 $36,000 + 3,200 $39,200 $22,800 + 900 $39,000 $42,000 $214,000 $45,000 $110,000 900 (b) Balances $214,000 $23,700 - 3,500 $20,200 $38,100 $45,000 $110,000 $39,200 + 13,500 $42,000 + 10,000 (c) Balances $214,000 $38,100 $45,000 $110,000 $52,700 $52,000 - 14,500 14,500 (d) Balance $37,500 $5,700 + 15,000 $38,100 $45,000 $110,000 $52,700 (e) Balances $214,000 + 15,000 $229,000 $45,000 $20,700 3,500 $52,700 + 2,100 $37,500 + 2,100 $38,100 $110,000 (1) Balances $20,700 $38,100 $45.000 $110,000 $54,800 $39.600 $229.000 Recording the effects of business transaction

Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by abletter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. For example, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200. ASSETS LIABILITIES OWNER'S EQUITY Cash + Account Land+ Building+ Equipment= Account Payable+ M.Saljad Capital Receivables + $39,000 $110,000 Balances (a) Balances $26,000 - 3,200 $45,000 $42,000 $214,000 $36,000 + 3,200 $39,200 $22,800 + 900 $39,000 $42,000 $214,000 $45,000 $110,000 900 (b) Balances $214,000 $23,700 - 3,500 $20,200 $38,100 $45,000 $110,000 $39,200 + 13,500 $42,000 + 10,000 (c) Balances $214,000 $38,100 $45,000 $110,000 $52,700 $52,000 - 14,500 14,500 (d) Balance $37,500 $5,700 + 15,000 $38,100 $45,000 $110,000 $52,700 (e) Balances $214,000 + 15,000 $229,000 $45,000 $20,700 3,500 $52,700 + 2,100 $37,500 + 2,100 $38,100 $110,000 (1) Balances $20,700 $38,100 $45.000 $110,000 $54,800 $39.600 $229.000 Recording the effects of business transaction

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 5MC: Which of these transactions would be part of the operating section? A. land purchased, with note...

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