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    Evaluate effect of each transaction on accounting equation

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    In the financial year 2002-03, Acme Carwash recorded the following transactions.

    The proprietor invested $20,000 in the business.
    The proprietor withdrew $5,000 from the business.
    The proprietor bought machinery worth $6,000.
    Cash sales amounted to $8,000.
    Credit sales amounted to $6,000.
    Land was purchased and paid for partly in cash, $8,000, and partly in credit $4,000.
    Viterra water bill in the amount of $550 was received and paid immediately.
    Progress Energy bill in the amount of $770 was received and recorded but was not paid at the end of the period.
    50% of the credit sales were realized.
    The Progress Energy bill was paid.

    Evaluate the effect of each transaction on the accounting equation. Use Module_I_Template_A_II for providing the solution.

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    In the financial year 2002-03, Acme Carwash recorded the following transactions.
    o The proprietor invested $20,000 in the business.
    o The proprietor withdrew $5,000 from the business.
    o The proprietor bought machinery worth $6,000.
    o Cash sales amounted to $8,000. ...

    Solution Summary

    This solution helps evaluate the effect transaction on accounting equations.

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