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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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During 2017, Ivanhoe Company entered into the following transactions.
Using the following tabular analysis, show the effect of each transaction on theaccounting equation. For Retained Earnings , use separate columns for Revenues, Expenses, and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity , place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.)
1. | Purchased equipment for $317,240 cash. | |
2. | Issued common stock to investors for $135,850 cash. | |
3. | Purchased inventory of $65,970 on account. |
Using the following tabular analysis, show the effect of each transaction on the
Assets
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= |
Liabilities
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+ |
Stockholders’ Equity
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Cash | + | Inventory | + | Equipment | = | Accounts Payable | + | Common Stock | + |
Retained Earnings
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(1)
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(2)
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(3)
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