Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Urgent need the answers, quick questions please :) 1. Indicate the effect of each of the following transactions on the basic accounting equation, using the
Urgent need the answers, quick questions please :)
1. Indicate the effect of each of the following transactions on the basic accounting equation, using the template approach. (ssompany's fiscal year end is December 31) Which of the following is correct options: 1. On January 1, the company issued shares for $75,000. a Assets (accounts receivable) increased by $250,000 and liabilities. (accounts payable) increased by $250,000 b. Assets (accounts receivable) increased by $250,000 and Shareholders' Equity (Common shares) increased by $250,000 c. Assets (Cash) increased by $250,000 and liabilities (dividends payable) increased by $250,000 d. Assets (Cash) increased by $250,000 and Shareholders' Equity (Common shares) increased by $250,000 2. On January 1, the company paid a one year rent policy for $1,800 cash. 2. Assets (Cash) decreased by $1,800 and Assets (Prepaid rent) increased by $1,800 increase b. Assets (Accounts receivable) decreased by $1,800 and Assets (Prepaid rent) increased by $1,800 increase c. Assets (Cash) decreased by $1,800 and liabilities (accounts payable) decreased by $1,800 d. Assets (Cash) decreased by $1,800 and Shareholders' equity (retained camnings/expense) dececased by $1,800 increase 3. February 10, the company bought $15,000 of inventory from suppliers on account 2. Assets (Inventory) increased by $15,000 and Liabilities (Accounts Payable) increased by $15,000 b. Assets (cash) decreased by $15,000 and Shareholder's Equity (Retained Eamings) decrcased by $15,000 c. Assets (Inventory) increased by $15,000 and Shareholders' Equity (Retained Earnings) increased by $15,000 4. February 20, the company makes a payment to suppliers for $10,500 for inventory previously purchased on account a Assets (Cash) decreased by $10,500 and Assets (inventory) increased by $10,500 b. Assets (Cash) decreased by $10,500 and Liabilities (Accounts Payable) decreased by $10,500 c. Assets (Cash) decreased by $10,500 and Shareholders' equity (retained earnings) increased by $10,500 d. None of the aboveStep 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