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For each of the following transactions identify the effects on the accounting equation

For each of the following transactions, identify the effects on the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L" and "E" to indicate assets, liabilities, and equity, respectively. Part ( has been completed as an example.

 

a.

L. Berryman invested $100,000 in the new corporation in exchange for stock.

+A

+E

b.

Land was purchased for $50,000.  A down payment of $15,000 cash was made and a note was signed for the balance.

 

 

c.

Services were rendered to customers for cash.

 

 

d.

A building was purchased for cash.

 

 

e.

Supplies were purchased for cash.

 

 

f.

Paid the office secretary’s salary.

 

 

g.

The amount owed on the land from part (b) was paid.

 

 

 

 

 

220. Sara Bloom has prepared the following analysis of September transactions for her business, Blooming Florist. Unfortunately, she has lost some information. Determine the missing amounts (a) through (c) below:

 

Date

Cash

Accounts Receivable

Accounts Payable

Notes Payable

Common Stock

Retained Earnings

Balances

30,000

30,100

(a)

8,500

10,000

30,000

9/5

-10,000

0

(b)

0

0

 

9/10

-3,500

0

0

0

0

(c)

 

 

 

221. The following schedule reflects the first month's transactions of the Blue Real Estate Company:

 

 

 

Cash +

Accounts Receivable +

 

Supplies +

 

Equipment -

Accounts Payable +

Common Stock +

Retained Earnings

a.

-20,000

 

 

 

 

+20,000

 

b.

-5,000

 

 

-5,000

 

 

 

c.

 

 

+1,500

 

+1,500

 

 

d.

+3,000

 

 

 

 

 

+3,000

e.

+1,000

+1,500

 

 

 

 

+2,500

f.

-750

 

 

 

-750

 

 

g.

+500

-500

 

 

 

 

 

h.

 

 

-400

 

 

 

-400

i.

-2,000

 

 

 

 

 

-2,000

 

 

Provide descriptions for each transaction.

Jan 28 2020 View more View Less

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