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Check out this Transactions That Change the Accounting Equation Problem I:( 1 point each, 5...

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Accounting

Check out this Transactions That Change the Accounting Equation

Problem I:( 1 point each, 5 points possible)

For each of the following business transactions, add or subtract the amounts to update total assets, liabilities, or owners equity. Continue the running balance for each transaction starting with the example figures given below:

Example: Ms. Smith, owner, invested $ 15,000 in a dry-cleaning business:

  1. Bought $ 2,000 worth of equipment, paying cash.
  2. Borrowed $ 7,500 from Schaumburg State bank.
  3. Bought $ 450 worth of supplies, paying cash.
  4. Bought a truck for $ 12,000, paying cash.
  5. Made a $ 1,500 payment on loan to Schaumburg State bank.

Assets

 = Liabilities + O/E

Beginning Balances

 $ 14, 250 $ 4,250 $ 10,000

Ms. Smith Example:

Running Balance

 + 15,000 $ 29,250 --------- $ 4,250 + 15,000 $ 25,000
1. $29,250+ $2,000=$31,250 $4,250 2000+27000
2. $31,250 +$7,500=$38750

+$7,500

 7500+29000
3. $38,750-$450=$38300 $11,750 29000-450=28,550
4. $38300 -$12,000=$26300 $11,750
5. 26300 $11,750-$1,500=10,250
Final Balance $26,300 $10,250 $25,000

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