Step 2: Record Transactions 1. List the following headings on a sheet of paper: Cash + Accounts Receivable + Store Supplies Office Supplies + Furniture and Fixtures + Equipment - Capital. 2. Record each of the following business transactions in the appropriate column. Identify each by number, and after each transaction is recorded, verify that the equation is in balance by footing (adding) the columns. The proprietor of the business: 1. Invested $20,000 in the business. 2. Purchased a desk and chairs for use in the business, paying $1.200 in cash 3. Purchased printer cartridges and computer disks, paying $170 in cash. 4. Purchased a computer and printer for use in the business, paying $1,500 in cash. 5. Lent a business associate $750 in cash, which the associate promised to repay in 10 days 6. Contributed to the business office supplies with a value of $60. 7. Received a check for $300 in partial payment of the amount that his associate owed him. 8. Permanently reduced his investment in the business by taking out a desk worth $100 and $900 in cash. 9. Returned equipment previously purchased and received a cash refund of $175. 10. Bought office supplies paying $65 in cash. The assets, liabilities, and proprietor's capital in the business were: Cash, $2,000; Accounts Receivable, $400; Supplies, $500; Equipment, $6,000; Accounts Payable, $900; A.L. Brandon, Capital, $8,000. The business transactions for the month of January were as follows: 1. Paid $300 of the outstanding accounts payable. 2. Received $100 on account (part payment) from customers. 3. Purchased $250 worth of supplies on account (on credit) 4. Returned a defective piece of equipment that was purchased last month and received a cash refund of $1,200. 5. Borrowed $1,000 from a supplier, giving word to repay the loan in 30 days. 6. Paid creditor $200 on account (part payment). 7. Purchased equipment for $800, giving 5200 cash and promising to pay the balance in GO days. 8. Bought supplies, paying $65 cash. 9. Received a $250 check from customer on account. Upon Finishing Law School, CarX G cani put oil in oven - Google Sex Cure.com/courses/2311/assignments/70189?module_item_id=94554 + 1. Paid $300 of the outstanding accounts payable 2. Received $100 on account (part payment) from customers. 3. Purchased $250 worth of supplies on account (on credit). 4. Returned a defective piece of equipment that was purchased last month and received a cash refund of $1,200 5. Borrowed $1,000 from a supplier, giving word to repay the loan in 30 days. 6. Paid creditor $200 on account (part payment). 7. Purchased equipment for $800, giving $200 cash and promising to pay the balance in 60 days. 8. Bought supplies, paying $65 cash. 9. Received a $250 check from customer on account Step 4: Create Chart Set up a chart using a form similar to that in Computational Problem 2. (Include a column for liabilities that follow the accounting equation form.) Record the January 1 balances immediately under the various assets, liability, and capital item headings. Record the business transactions listed above. Be certain to label each transaction with the corresponding number assigned, and foot the columns after each transaction has been recorded to verify the balance of the equation. Notice that every business transaction involves a minimum of two changes. Transaction (g) has three changes, but notice that the dollar changes are equal; thus, the equation in this case, as with all the business transactions, remains in balance. Upon finishing law school, Caroline Jones set up a law practice. During the first month, she completed the following business transactions: 1. Invested $3,000 cash in the business 2. Purchased a law library for $1.200 cash. 3. Received $500 for services rendered 4. Purchased office supplies on credit for $150. 5. Paid rent for the month amounting to $300 6. Sent a bill for $1,100 for services rendered 7. Sent a check for $50 in part payment of accounts payable, 8. Received $200 from customers as a result of services previously rendered and recognized 9. Sent a check for $60 to the local utility company for costs incurred in beginning service. 10. Borrowed $200 from the business (show the effect of this loan in the Caroline Jones drawing account). Set up a chart using a form similar to that in Computational Problem 4. The following account headings are to be used: Assets---Cash, Accounts Receivable, Office Supplies, Law Library; Liabilities Accounts Payable; Capital - Caroline Jones, Capital: Caroline Jones, Drawing; Income from Services; Rent Expense; Utilities Expense, Record the business transactions listed above, making certain to verify the balance in the accounting equation as a result of each business transaction. Remember that revenue increases capital; expenses decrease capital; drawing decreases capital. Step 2: Record Transactions 1. List the following headings on a sheet of paper: Cash + Accounts Receivable + Store Supplies Office Supplies + Furniture and Fixtures + Equipment - Capital. 2. Record each of the following business transactions in the appropriate column. Identify each by number, and after each transaction is recorded, verify that the equation is in balance by footing (adding) the columns. The proprietor of the business: 1. Invested $20,000 in the business. 2. Purchased a desk and chairs for use in the business, paying $1.200 in cash 3. Purchased printer cartridges and computer disks, paying $170 in cash. 4. Purchased a computer and printer for use in the business, paying $1,500 in cash. 5. Lent a business associate $750 in cash, which the associate promised to repay in 10 days 6. Contributed to the business office supplies with a value of $60. 7. Received a check for $300 in partial payment of the amount that his associate owed him. 8. Permanently reduced his investment in the business by taking out a desk worth $100 and $900 in cash. 9. Returned equipment previously purchased and received a cash refund of $175. 10. Bought office supplies paying $65 in cash. The assets, liabilities, and proprietor's capital in the business were: Cash, $2,000; Accounts Receivable, $400; Supplies, $500; Equipment, $6,000; Accounts Payable, $900; A.L. Brandon, Capital, $8,000. The business transactions for the month of January were as follows: 1. Paid $300 of the outstanding accounts payable. 2. Received $100 on account (part payment) from customers. 3. Purchased $250 worth of supplies on account (on credit) 4. Returned a defective piece of equipment that was purchased last month and received a cash refund of $1,200. 5. Borrowed $1,000 from a supplier, giving word to repay the loan in 30 days. 6. Paid creditor $200 on account (part payment). 7. Purchased equipment for $800, giving 5200 cash and promising to pay the balance in GO days. 8. Bought supplies, paying $65 cash. 9. Received a $250 check from customer on account. Upon Finishing Law School, CarX G cani put oil in oven - Google Sex Cure.com/courses/2311/assignments/70189?module_item_id=94554 + 1. Paid $300 of the outstanding accounts payable 2. Received $100 on account (part payment) from customers. 3. Purchased $250 worth of supplies on account (on credit). 4. Returned a defective piece of equipment that was purchased last month and received a cash refund of $1,200 5. Borrowed $1,000 from a supplier, giving word to repay the loan in 30 days. 6. Paid creditor $200 on account (part payment). 7. Purchased equipment for $800, giving $200 cash and promising to pay the balance in 60 days. 8. Bought supplies, paying $65 cash. 9. Received a $250 check from customer on account Step 4: Create Chart Set up a chart using a form similar to that in Computational Problem 2. (Include a column for liabilities that follow the accounting equation form.) Record the January 1 balances immediately under the various assets, liability, and capital item headings. Record the business transactions listed above. Be certain to label each transaction with the corresponding number assigned, and foot the columns after each transaction has been recorded to verify the balance of the equation. Notice that every business transaction involves a minimum of two changes. Transaction (g) has three changes, but notice that the dollar changes are equal; thus, the equation in this case, as with all the business transactions, remains in balance. Upon finishing law school, Caroline Jones set up a law practice. During the first month, she completed the following business transactions: 1. Invested $3,000 cash in the business 2. Purchased a law library for $1.200 cash. 3. Received $500 for services rendered 4. Purchased office supplies on credit for $150. 5. Paid rent for the month amounting to $300 6. Sent a bill for $1,100 for services rendered 7. Sent a check for $50 in part payment of accounts payable, 8. Received $200 from customers as a result of services previously rendered and recognized 9. Sent a check for $60 to the local utility company for costs incurred in beginning service. 10. Borrowed $200 from the business (show the effect of this loan in the Caroline Jones drawing account). Set up a chart using a form similar to that in Computational Problem 4. The following account headings are to be used: Assets---Cash, Accounts Receivable, Office Supplies, Law Library; Liabilities Accounts Payable; Capital - Caroline Jones, Capital: Caroline Jones, Drawing; Income from Services; Rent Expense; Utilities Expense, Record the business transactions listed above, making certain to verify the balance in the accounting equation as a result of each business transaction. Remember that revenue increases capital; expenses decrease capital; drawing decreases capital