Question: Transaction analysis and use of the basic accounting equation Required Analyze the following transactions and show their effects...

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Accounting

Question: Transaction analysis and use of the basicaccounting equation
Required
Analyze the following transactions and show theireffects on the basic accounting equation, by preparing a templateas follows:
?
ASSETS
?
LIABILITIES
S/H EQUITY
Date/Ref.
Cash
A/R
Inv.
Equip.
A/P
Dividends Payable
Loan Payable
Common Shares
Rev/Exp
Rev/Exp/DD
?
a. Received $250,000 from the issuanceof shares.
b. Borrowed $100,000 from the bank at6% per year.
c. Purchased equipment for$178,000.
d. Purchased inventory costing $75,000,paying $50,000, with the balance on account.
e. Recorded sales of $92,000 (half cashand half on account) to customers. The inventory related to thesesales had a cost of $49,000.
f. Paid $20,000 to suppliers related tothe purchase on inventory in transaction (d).
g. Paid $3,700 in wages toemployees.
h. Repaid loan principal of $4,000 plusinterest of $1,200 related to the bank loan.
i. Recorded depreciation of $22,600 onthe company's equipment.
j. Declared dividends of$8,000.

Answer & Explanation Solved by verified expert

4.0 Ratings (405 Votes)

Assets

LIABILITIES

Shareholder's Equity

Date / Ref.

Cash

Account Receivable

Inventory

Equipment

Account payable

Dividend Payable

Loan Payable

Common Shares

Rev/ Exp

Rev/ Exp/DD

$ 2,50,000

250000

$ 1,00,000

$ -1,78,000

$ 1,78,000

$ -50,000

$ 75,000

$ 25,000

$ 46,000

92000

-49000

$ -20,000

$ -3,700

$ -5,200

$ -4,000

-1200

$ -22,600

$ 8,000

Closing Balance

$ 1,39,100

$ 46,000

$ 75,000

$ 1,55,400

$ 5,000

$ 8,000

$ 96,000

$ 2,50,000

$ 92,000

$ -68,500

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Question: Transaction analysis and use of the basicaccounting equationRequiredAnalyze the following transactions and show theireffects on the basic accounting equation, by preparing a templateas follows:?ASSETS?LIABILITIESS/H EQUITYDate/Ref.CashA/RInv.Equip.A/PDividends PayableLoan PayableCommon SharesRev/ExpRev/Exp/DD?a. Received $250,000 from the issuanceof shares.b. Borrowed $100,000 from the bank at6% per year.c. Purchased equipment for$178,000.d. Purchased inventory costing $75,000,paying $50,000, with the balance on account.e. Recorded sales of $92,000 (half cashand half on account) to customers. The inventory related to thesesales had a cost of $49,000.f. Paid $20,000 to suppliers related tothe purchase on inventory in transaction (d).g. Paid $3,700 in wages toemployees.h. Repaid loan principal of $4,000 plusinterest of $1,200 related to the bank loan.i. Recorded depreciation of $22,600 onthe company's equipment.j. Declared dividends of$8,000.

?	ASSETS				?	LIABILITIES			S/H EQUITY
Date/Ref.	Cash	A/R	Inv.	Equip.		A/P	Dividends Payable	Loan Payable	Common Shares	Rev/Exp	Rev/Exp/DD
?