Explore BrainMass

Explore BrainMass

    The Effects on the Accounting Equation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Jane Dow opens an apartment-location business near a college campus. She has a sole proprietorship. During the first month of operation, she has the following transactions. Note the effect on the accounting equation (credits/debits) for each. Be sure to list each specific account impacted:

    a. She invests $35,000 of personal funds to start the business
    b. She purchases office supplies, on account, costing $350
    c. She pays cash of $30,000 to acquire a lot. She plans to use the lot as a future site for her business office.
    d. She locates apartments for clients and receives cash of $1,900.
    e. She pays $100 on the account payable she created in transaction B.
    f. She pays cash expenses for office rent of $400 and utilities of $100
    g. She withdraws cash in the amount of $1200 for personal use.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:36 pm ad1c9bdddf

    Solution Summary

    The effect on the accounting equation for several transactions are analyzed.