Question
The following are transactions for an organization manufacturing sports-shoe. How would each transaction affect the Balance Sheet Equation? Write the name of the account in
The following are transactions for an organization manufacturing sports-shoe. How would each transaction affect the Balance Sheet Equation? Write the name of the account in the appropriate column. Mark, 'NC' for No Change, I for increase and D for decrease.
Transactions | Assets | Liabilities | Owners equity |
Example: Borrowed money from a bank | I | I | NC |
Received interest from government bonds |
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Sold furniture for cash at a price equal to its book value |
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Purchased office computer on credit |
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Accounted for depreciation on delivery truck |
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The owner invested cash in the business |
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Collected cash for goods previously sold on credit |
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Returned for credit some of the goods previously purchased on credit |
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Paid salaries to employees |
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Paid back loan borrowed from bank |
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Received interest on investment in government bonds |
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