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Complete the T-Accounts for the following event: Mary starts a corporation as the sole shareholder by investing $50,000. She also borrows $20,000 from the bank.
Complete the T-Accounts for the following event:
- Mary starts a corporation as the sole shareholder by investing $50,000. She also borrows $20,000 from the bank. The corporation then uses $60,000 to buy office equipment.
T-Account
Answer CashAccounts ReceivableAccounts Payable
Debit Credit Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000
Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000
Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000
Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000
Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000
Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000
Indicate what impact the following transactions have on the accounting equation, Assets = Liabilities + Equity.
$10,000 in sales on account
Answer +assetsassets+liabilities-liabilities
Answer +liabilities-liabilities+equity-equity
Paid $6,000 in rent with cash
Answer +assetsassets+liabilities-liabilities
Answer +liabilities-liabilities+equity-equity
Borrowed $20,000 from the bank
Answer +assetsassets+liabilities-liabilities
Answer +liabilities-liabilities+equity-equity
The owner invests $70,000
Answer +assetsassets+liabilities-liabilities
Answer +liabilities-liabilities+equity-equity
Complete the T-Accounts for the following event:
- Mary starts a corporation as the sole shareholder by investing $50,000. She also borrows $20,000 from the bank. The corporation then uses $60,000 to buy office equipment.
| T-Account | |
| Answer CashAccounts ReceivableAccounts Payable | |
| Debit | Credit |
| Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000 | Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000 |
| Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000 | Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000 |
| Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000 | Answer BLANK$50,000$70,000$60,000$20,000$30,000$40,000 |
Indicate what impact the following transactions have on the accounting equation, Assets = Liabilities + Equity.
| $10,000 in sales on account | Answer +assetsassets+liabilities-liabilities | Answer +liabilities-liabilities+equity-equity |
| Paid $6,000 in rent with cash | Answer +assetsassets+liabilities-liabilities | Answer +liabilities-liabilities+equity-equity |
| Borrowed $20,000 from the bank | Answer +assetsassets+liabilities-liabilities | Answer +liabilities-liabilities+equity-equity |
| The owner invests $70,000 | Answer +assetsassets+liabilities-liabilities | Answer +liabilities-liabilities+equity-equity |
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel G. Short
3rd Edition
0072458836, 978-0072458831
