Assets = Liabilities + Owner's Equity
(a) Invested cash in the business $30,000
Cash = Owner,s Equity (Capital)
$30,000 = $30,000
(b) Bought Office Equipment on account $4,500
Cash + Office Equipment = Owner's Equity + Supplier's A/c
$30,000 + $4,500 = $30,000 + $4,500
$34,500 = $34,500
(c) Bought Office Equipment for cash $1,600
Cash + Old Office Equipment + New Office Equipment = Owner's Equity + Supplier's A/c
$28,400 + $4,500 + $1,600 = $30,000 + $4,500
$28,400 + $6,100 = $30,000 + $4,500 (after cash purchases of equipment)
(d) Paid cash on account to supplier in transaction $2,000
Cash + Equipment = Owner's Equity + Supplier's A/c
$26,400 + $6,100 = $30,000 + 2,500 (after paid $2,000 to supplier)
$32,500 = $32,500
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