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this exercise is an extension of exercise 2-3 a. John Sullivan started a business. During the first month the following transactions occurred. Show the effect of each transaction on the

this exercise is an extension of exercise 2-3 a. John Sullivan started a business. During the first month the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= liabilities + owner's equity. (A) invested cash in the business $27,000. (B) bought office equipment on account $7,500. (C) the office equipment for cash $1,600. (D) pay cash on account to supplier in transaction (b) $2,300.John Sullivan completed the following additional transactions during February. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital - Drawing + Revenues - Expenses).  After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. 

(E) received cash by client for professional services, $1,500

(F) pay office rent for February, $600

(G) paid February phone bill, $64

(H) withdrew cash for personal use, $1,000

(I) performed services for clients on account, $750

(J) pay wages for part-time employee, $1,200

(K) received cash for services performed on account and transaction (I), $400

 

Sep 10 2020 View more View Less

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