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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

TRANSACTION ANALYSIS Linda Kipp starred a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.

  1. (a) Invested cash in the business, $5,000.
  2. (b) Bought equipment for cash, $700.
  3. (c) Bought equipment on account, $600.
  4. (d) Paid cash on account for equipment purchased in transaction (c), $400.
  5. (e) Withdrew cash for personal use, $900.

FOOT AND BALANCE T ACCOUNTS Foot and balance the T accounts prepared Exercise 3-5A if necessary.

To determine

Analyze the given transactions for the first month of business using T accounts and foot the balance of T-accounts.

Explanation

Analysis of transactions: A transaction refers to any business event that affects assets, liabilities and stockholders’ equity or owner’s equity which can be measured in monetary terms.

T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit...

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