Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Analyze the following transactions as set forth below. Use the spreadsheet on page 3 to keep track of the amount in each account: (a) Stockholder
Analyze the following transactions as set forth below. Use the spreadsheet on page 3 to keep track of the amount in each account: (a) Stockholder invests $10,000 into the business in exchange for common stock. 1. Does a transaction exist? 2. Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (b) Company borrows $15,000 signing a note payable to the bank that is due in three months. 1. Does a transaction exist? 2. Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (c) Receives and pays for a $15,000 truck and $5,000 of equipment. 1. Does a transaction exist? 2. Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (d) Purchases $300 of supplies on account. 1. Does a transaction exist? 2. Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (e) Signs contract for first website design for $10,000. 1. Does a transaction exist? 2. Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (1) Pays $300 to the supplier in (d). 1. Does a transaction exist? 2. Examinet for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (g) Purchases and pays for $600 of supplies. Does a transaction exist? 1. 2. Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount. 5. Ensure the equation still balances. (h) Purchases and pays for equipment costing $1,000. 1. Does a transaction exist? 2 Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount 5. Ensure the equation stil balances ()Orders a $900 lawn mower, to be delivered next month. 1. Does a transaction exist? 2 Examine it for accounts affected. 3. Classify each account affected. 4. Identify direction and amount 5. Ensure the equation still balances. Assets = Liabilities + Stockholders' Equity Accounts Ref. Cash +Supplies Payable + Equipment= + Notes Payable (short-term) + Common Stock (a) (b) (c) (d) (1) (g) (h) (i)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started