Effects on the accounting equation
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Please complete the attached practice problems.
Indicate the two (or more) effects on the accounting equation of the business or company. I have completed the first one.
The owner invests personal cash in the business.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease NoEffect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The owner withdraws business assets for personal use.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The company receives cash from a bank loan.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The company repays the bank that had lent money to the company.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The company purchases equipment with its cash.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The owner contributes her personal truck to the business.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The company purchases a significant amount of supplies on credit.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The company purchases land by paying half in cash and signing a note payable for the other half.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
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Solution Summary
Response provides the steps to analyze the effects of various transactions on the accounting equation
Solution Preview
Indicate the two (or more) effects on the accounting equation of the business or company. I have completed the first one.
The owner invests personal cash in the business.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The owner withdraws business assets for personal use.
Assets: Increase Decrease No Effect
Liabilities: Increase Decrease No Effect
Owner's (or Stockholders') Equity: Increase Decrease No Effect
The company ...
Purchase this Solution
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