Please describe how the following transactions affect the accountingequation:
1- Provide services on account
2- Purchase Inventory for Cash
3- Use Cash to pay down Accounts Payable
For each, please tell me if the following account increase, decrease or no change:
Assets, Liability and Owners Equity
For the following four cases, use the expanded accountingequation to compute the missing
Assets Liabilities Capital Stock Retained Earnings
Case A $20,000 $ 8,000 A $ 3,500
Case B 16,000 B $ 5,000 2,000
WHEN RECORDING A TRANSACTION IN ACCOUNTING FOR A PURCHASE FOR A "VEHICLE" FOR A COMPANY, LIKE A COMPANY TRUCK, IF THE ASSET IS RECORDED AS AN EXPENSE, WHAT DOES THIS DO TO THE BASIC ACCOUNTINGEQUATION AND WHAT DOES IT DO TO INCOME.?
A business purchases $5,000 of supplies on credit. How does this impact the accountingequation?
Assets Liabilities Owner's Equity
A) Decrease Increase Increase
B) Increase Decrease No effect
C) Increase Increase No effect
D) Increase No effect Increase.
The accountingequation for a special revenue fund is
a Assets - Liabilities = Net Assets.
b Financial Assets - Related Liabilities = Fund Balance.
c General Capital Assets - Unmatured General Long-Term Liabilities = Net Assets.
d Current and Long Term Assets - Liabilities = Fund Balance.
What is the impact on the accountingequation of receiving a check from customers for work to be performed over the next three periods (none in this period)?
Equity: no change
Liabilities: no change
Please post these transactions using the Accountingequation.
Asset = Liabilities + Owners Equity
1. Dan inspected 10 homes this week, charging the customers a total of
$2100 and receiving payment of $1,500. He billing the rest.
2. He paid $500 on a business credit card. $100 was interest
A. The framework used to record and summarize the economic activities of a business enterprise is referred to as the accountingequation. State the basic accountingequation and define each of its major components. How are business transactions and financial statements related to the accountingequation?
B. Explain t
Consider the following statements:
I. The payment of a liability in cash will decrease stockholders' equity.
II. The purchase of equipment for cash has no effect on total assets value.
III. When a business borrows money from a bank, both the left and right sides of the accountingequation increase.
a) All statements I,