Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Effect of transactions on accounting equation The transactions of Francesco Travel Services during a month are listed below: a) Purchased a typewriter for cash 7,000
Effect of transactions on accounting equation
The transactions of Francesco Travel Services during a month are listed below:
- a) Purchased a typewriter for cash 7,000
- b) Billed customers for services rendered 19,000
- c) Purchased office supplies on credit 3,000
- d) Owner invested 5,000 in cash into the company
- e) Collected part payment from customers 11,000
- f) Received a bank loan 5,000
- g) Paid part of the amount due to creditor for supplies 1,800
- h) Received part payment for services rendered 8,000
- i) Repaid a part of the bank loan 1,000
- j) Paid salaries for the month 2,500
- k) Owner withdrew cash for private use 1,800
Required
Using the format given below, indicate whether each transaction resulted in an increase (+), decrease (-) or No Effect on the total amounts of the company's assets, liabilities and owners equity.
Transaction Assets OwnersEquity Liabilities
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