Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction for transaction details. Determine the new balance for each component of the accounting equation (assets, liabilities, owner’s equity) resulting from the transaction. (You will not need to enter the amount of each transaction, only the balance after the transaction.) If an amount box does not require an entry, leave it blank. Transaction Assets = Liabilities + Owner's Equity Beginning $0 $0 $0 1. Investment in the business The owner of the company invested $16,810 cash into the business 2. Borrow cash The company borrows $7,770 from the local bank 3. Purchase equipment The company pays cash for a piece of equipment. The list price was $9,100, but after negotiation the final was $8,700 4. Revenues earned During the year, Thomas Company earned revenues totaling $ 296,600. The cash has been collected from the customers for all revenue earned this year. 5. Expenses incurred Thomas Company incurred expenses totaling $210,900 during that same year. All of the expenses incurred this year were paid in cash. 6. Distributions At the end of each quater, Thomas Company distributed cash to its owners. The sum of those quaterly distribution was $ 15,400.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 8Q

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Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction for transaction details. Determine the new balance for each component of the accounting equation (assets, liabilities, owner’s equity) resulting from the transaction. (You will not need to enter the amount of each transaction, only the balance after the transaction.) If an amount box does not require an entry, leave it blank.

Transaction	Assets =	Liabilities +	Owner's Equity
Beginning	$0	$0	$0
1. Investment in the business The owner of the company invested $16,810 cash into the business
2. Borrow cash The company borrows $7,770 from the local bank
3. Purchase equipment The company pays cash for a piece of equipment. The list price was $9,100, but after negotiation the final was $8,700
4. Revenues earned During the year, Thomas Company earned revenues totaling $ 296,600. The cash has been collected from the customers for all revenue earned this year.
5. Expenses incurred Thomas Company incurred expenses totaling $210,900 during that same year. All of the expenses incurred this year were paid in cash.
6. Distributions At the end of each quater, Thomas Company distributed cash to its owners. The sum of those quaterly distribution was $ 15,400.

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