John Sullivan started a business. During the first month, the following transactions occured. Show the effect of each transaction on the accounting equation: Assets=Liabilities+ Owner's Equity. After each transaction, show the new totals. (a) invested cash in the business, $27,000. (b) bought equipment on account, $7,500 (c) bought office equipment for cash, $1,600 (d) paid cash on account to supplier in transaction (b), $2,300

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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John Sullivan started a business. During the first month, the following transactions occured. Show the effect of each transaction on the accounting equation: Assets=Liabilities+ Owner's Equity. After each transaction, show the new totals.

(a) invested cash in the business, $27,000.

(b) bought equipment on account, $7,500

(c) bought office equipment for cash, $1,600

(d) paid cash on account to supplier in transaction (b), $2,300

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