EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) John Sullivan started a business.During the first month (Februaary-20--), the following transactions occured.Show the effect of each transaction on the acciunting equation: Assets = Liabilities +Owner's Equity. After each transaction,show the new totals. (a) Invested cash in the business,$27,000. (b) Bought office equipment on account, $7,500. (c) Bought office equipment for cash,$1,600. (d) Paid cash on account to supplier in transaction (b),$2,300. EFFECTS OF TRANSACTION (REVENUE,EXPENSE,WITHDRAWLS) This exercise is an extension of exercise 2-3 A.Let;s assume Jhon Sullivan completed the following additional transactions during February.Show the effet of each transaction on the basic elements of the expanded accounting equation:Assets = Liabilities +Owner's Equity (capital- Drawing + Revenues- Expenses).After transaction (k), report the totals for each elememt.Demonstrate that the accounting equation has remaind in balance. (e) Received cash from a client for professional services,$1,500. (f) Paid office rent for February,$600. (g) Paid February phone bill,$1,000. (i) Performed services for clients on accounts,$750. (J) Paid wages to part-time employess,$1,200. (k) Received cash for services performed on account in transaction(i),$400.
EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) John Sullivan started a business.During the first month (Februaary-20--), the following transactions occured.Show the effect of each transaction on the acciunting equation: Assets = Liabilities +Owner's Equity. After each transaction,show the new totals.
(a) Invested cash in the business,$27,000.
(b) Bought office equipment on account, $7,500.
(c) Bought office equipment for cash,$1,600.
(d) Paid cash on account to supplier in transaction (b),$2,300.
EFFECTS OF TRANSACTION (REVENUE,EXPENSE,WITHDRAWLS) This exercise is an extension of exercise 2-3 A.Let;s assume Jhon Sullivan completed the following additional transactions during February.Show the effet of each transaction on the basic elements of the
(e) Received cash from a client for professional services,$1,500.
(f) Paid office rent for February,$600.
(g) Paid February phone bill,$1,000.
(i) Performed services for clients on accounts,$750.
(J) Paid wages to part-time employess,$1,200.
(k) Received cash for services performed on account in transaction(i),$400.
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