EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) John Sullivan started a business.During the first month (Februaary-20--), the following transactions occured.Show the effect of each transaction on the acciunting equation: Assets = Liabilities +Owner's Equity. After each transaction,show the new totals. (a) Invested cash in the business,$27,000. (b) Bought office 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. EFFECTS OF TRANSACTION (REVENUE,EXPENSE,WITHDRAWLS) This exercise is an extension of exercise 2-3 A.Let;s assume Jhon Sullivan completed the following additional transactions during February.Show the effet of each transaction on the basic elements of the expanded accounting equation:Assets = Liabilities +Owner's Equity (capital- Drawing + Revenues- Expenses).After transaction (k), report the totals for each elememt.Demonstrate that the accounting equation has remaind in balance. (e) Received cash from a client for professional services,$1,500. (f) Paid office rent for February,$600. (g) Paid February phone bill,$1,000. (i) Performed services for clients on accounts,$750. (J) Paid wages to part-time employess,$1,200. (k) Received cash for services performed on account in                       transaction(i),$400.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 4SEB: EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first...
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EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) John Sullivan started a business.During the first month (Februaary-20--), the following transactions occured.Show the effect of each transaction on the acciunting equation: Assets = Liabilities +Owner's Equity. After each transaction,show the new totals.

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

(b) Bought office 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.

EFFECTS OF TRANSACTION (REVENUE,EXPENSE,WITHDRAWLS) This exercise is an extension of exercise 2-3 A.Let;s assume Jhon Sullivan completed the following additional transactions during February.Show the effet of each transaction on the basic elements of the expanded accounting equation:Assets = Liabilities +Owner's Equity (capital- Drawing + Revenues- Expenses).After transaction (k), report the totals for each elememt.Demonstrate that the accounting equation has remaind in balance.

(e) Received cash from a client for professional services,$1,500.

(f) Paid office rent for February,$600.

(g) Paid February phone bill,$1,000.

(i) Performed services for clients on accounts,$750.

(J) Paid wages to part-time employess,$1,200.

(k) Received cash for services performed on account in                       transaction(i),$400.

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