On February 1, 2021, Jessica Campbell begins her own business - Jessicas Healthy Bites. During February, Jessica

Question:

On February 1, 2021, Jessica Campbell begins her own business - Jessica’s Healthy Bites. During February, Jessica recorded the following business transactions. Indicate the effects of the following business transactions on the accounting equation, A = L + OE, for Jessica’s Healthy Bites. Transaction (a) is answered as a guide.

a. Received cash of $10,000 from issuance of common stock to stockholders.

Answer: Increase asset $10,000 (Cash); Increase equity $10,000 (Common Stock)

b. Borrowed $20,000 cash from a bank, to be repayable in two years.

c. Purchased office supplies on account, $1,000.

d. Received cash for products sold, $500.

e. Paid cash on account, $1,000.

f. Paid rent of $3,000.
g. Incurred utilities of $180 on account.
h. Paid $200 bank loan.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

Question Posted: