Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) * Answer is complete but not entirely correct. Date Assets Liabilities Stockholders' Equity 62,900 O O (13,900) O January 1 Equipment (Van) Short term note payable 49,000 O Cash January 2 Equipment (Van) 750 O Cash (750) O September 30 O (51,940) O O (49,000) O O 2,940 8 Cash Short term note payable Interest expense O000 0
Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) * Answer is complete but not entirely correct. Date Assets Liabilities Stockholders' Equity 62,900 O O (13,900) O January 1 Equipment (Van) Short term note payable 49,000 O Cash January 2 Equipment (Van) 750 O Cash (750) O September 30 O (51,940) O O (49,000) O O 2,940 8 Cash Short term note payable Interest expense O000 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Steve’s Outdoor Company purchased a new delivery van on January 1 for $58,000 plus $4,900 in sales tax. The company paid $13,900 cash on the van (including the sales tax), signing an 8 percent note for the $49,000 balance due in nine months (on September 30). On January 2, the company paid cash of $750 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steve’s Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $5,800.
Not sure why my interest amount is wrong.. Please see pic
Intere
Transcribed Image Text:Required:
1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts.
If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".)
X Answer is complete but not entirely correct.
Date
Assets
Liabilities
Stockholders' Equity
January 1
Equipment (Van)
62,900
Short term note payable
49,000
Cash
|(13,900)
January 2
Equipment (Van)
750
Cash
(750)
September
Cash
(51,940)
Short term note payable
(49,000)
Interest expense
2,940
30
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education