Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Determining how transactions change an accounting equation Marion Cassidy operates a service business called Cassidy Company. Cassidy Company uses the accounts shown in the following

Determining how transactions change an accounting equation Marion Cassidy operates a service business called Cassidy Company. Cassidy Company uses the accounts shown in the following accounting equation. Use the form in your Working Papers to complete this problem

Transactions:

1. Paid cash for rent, $400.00.

2. Received cash from owner as an investment, $500.00.

3. Paid cash for telephone bill, $50.00.

4. Received cash from sales, $1,025.00.

5. Bought supplies on account from Delta Company, $450.00.

6. Sold services on account to Ana Santiago, $730.00.

7. Paid cash for advertising, $660.00.

8. Paid cash for supplies, $150.00.

9. Received cash on account from Ana Santiago, $400.00.

10. Paid cash on account to Delta Company, $1,500.00.

11. Paid cash for one month of insurance, $100.00.

12. Received cash from sales, $1,230.00.

13. Paid cash to owner for personal use, $1,200.00.

Step by Step Solution

3.43 Rating (162 Votes )

There are 3 Steps involved in it

Step: 1

Initial Accounting Equation Assets Liabilities Owners Equity 1 Paid cash for rent 40000 Decrease in Cash asset by 40000 No change in Liabilities No change in Owners Equity Updated Accounting Equation ... 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

Describe a typical incorporation process.

Answered: 1 week ago

Question

=+b) Test an appropriate hypothesis and state your conclusion.

Answered: 1 week ago