Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

$1,500 18. Apple Tree had the following balances when formed: Assets Liabilities Cash $2,400 Notes payable Equipment 1,300 Owner's Equity Johnny, capital Total assets $3,700

image text in transcribed

$1,500 18. Apple Tree had the following balances when formed: Assets Liabilities Cash $2,400 Notes payable Equipment 1,300 Owner's Equity Johnny, capital Total assets $3,700 Total liabilities and owner's equity 2,200 53,700 During the first year of operations, the following transactions occurred: Collected $12.000 cash in rental revenue Made a $2,000 investment in equity securities using $1,000 cash and a $1,000 note payable. Incurred and paid $2,000 in cash for utilities expense, $3,500 in rent expense, and $2,200 in wages expense. Johnny, Apple Tree's owner, withdrew $200 in cash from the business and contributed $1,500 in equipment. Show the cumulative effect on the accounting equation from the transactions for the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Techniques For Analytical Review In Auditing

Authors: Kenneth W. Stringer, Trevor R. Stewart

1st Edition

047186076X, 978-0471860761

More Books

Students also viewed these Accounting questions

Question

How might social change occur?

Answered: 1 week ago