What is the equation budget for each of the following1- The first transaction means that Safia (the owner)entered a capital of $ 10,000 in cash to start thebusiness. An asset (cash) column is created to recordthis transaction. The effect of the deal is that theassets and equity will increase by $ 10,0002- The second transaction states that the goods werepurchased on credit from Anees (creditor / supplier).The effect will increase the business assets (stocks)as well as liabilities (creditor) by $ 300 because thecompany owes the money to Anis.3- Salaries are work expenses. When the cashrepayment is made, the asset (cash) will be reducedand the equity (equity) also becomes lower by $ 3000due to this cash advance.4- Borrowing is like a bank loan, as the business needsmoney in its operations. The effects of this transactionare that the assets (cash) and liabilities column (bankloan) are also increased by $ 2000.5- The cash column will include when the companypurchases $ 1000 cash goods, it serves as inventory forresale to customers. The asset (cash) will increase andthe asset (the inventory) will decrease by $ 1,000 due tothis transaction.6. In this transaction, $ 300 worth of items were sold toAna on credit terms. The effects will be the depreciationof the asset value (owner's equity). 300 dollars.7- When the owner repays part of the loan that thecompany borrows from the bank, the columns of assets(cash) and liabilities (bank loan) can be deducted by$ 1,000. There is no influence on the capital (equity)nn of this transactiocol8- The transaction by the company will be a withdrawalthat affects the capital (equity) of the owner. TheCash & Capital column will decrease by $ 500 due towithdrawal. Recorded business transactions affectingthe assets, liabilities and capital of the company mustbe finalized.e 6:

Solution- S no Assets = Cash stock asset…

/hat is the equation budget for each of the following - The first transaction means that Safia (the owner) ntered a capital of $ 10,000 in cash to start the usiness. An asset (cash) column is created to record is transaction. The effect of the deal is that the

/hat is the equation budget for each of the following - The first transaction means that Safia (the owner) ntered a capital of $ 10,000 in cash to start the usiness. An asset (cash) column is created to record is transaction. The effect of the deal is that the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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