SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by a b letter. 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 Receivables + Land+ Building+ Equipment= Account Payable+ M.Sajjad Capital Balances (a) $26,000 - 3,200 $39,000 $45,000 $110,000 $36,000 + 3,200 $42,000 $214,000 Balances (b) $22,800 + 900 $39,000 - 900 $45,000 $110,000 $39,200 $42,000 $214,000 Balances (c) $23,700 - 3,500 $38,100 $45,000 $110,000 $39,200 + 13,500 $42,000 + 10,000 $214,000 Balances (d) $20,200 - 14,500 $38,100 $45,000 $110,000 $52,700 $52,000 - 14,500 $214,000 Balance (e) $5,700 + 15,000 $38,100 $45,000 $110,000 $52,700 $37,500 $214,000 + 15,000 Balances (f) $20,700 - 3,500 $38,100 $45,000 $110,000 $52,700 + 2,100 $37,500 + 2,100 $229,000 Balances $20,700 $38,100 $45,000 $110,000 $54,800 $39,600 $229,000 Recording the effects of business transaction
SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by a b letter. 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.
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ASSETS = |
LIABILITIES + |
OWNER’S EQUITY |
|||||
|
|
Cash + |
|
Land+ |
Building+ |
Equipment= |
Account Payable+ |
M.Sajjad Capital |
|
Balances (a) |
$26,000 - 3,200 |
$39,000 |
$45,000 |
$110,000 |
$36,000 + 3,200 |
$42,000 |
$214,000 |
|
Balances (b) |
$22,800 + 900 |
$39,000 - 900 |
$45,000 |
$110,000 |
$39,200
|
$42,000 |
$214,000 |
|
Balances (c) |
$23,700 - 3,500 |
$38,100 |
$45,000 |
$110,000 |
$39,200 + 13,500 |
$42,000 + 10,000 |
$214,000 |
|
Balances (d) |
$20,200 - 14,500 |
$38,100 |
$45,000 |
$110,000 |
$52,700
|
$52,000 - 14,500 |
$214,000 |
|
Balance (e) |
$5,700 + 15,000 |
$38,100 |
$45,000 |
$110,000 |
$52,700
|
$37,500
|
$214,000 + 15,000 |
|
Balances (f) |
$20,700 - 3,500 |
$38,100 |
$45,000 |
$110,000 |
$52,700 + 2,100 |
$37,500 + 2,100 |
$229,000
|
|
Balances
|
$20,700 |
$38,100 |
$45,000 |
$110,000 |
$54,800 |
$39,600 |
$229,000 |
Recording the effects of business transaction
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