Analyze the following transactions and show their effects on the basic accounting equation, by preparing a table like the one in Exhibit 2-3:
In Exhibit 2-3
a. Received $150,000 from investors buying shares in the company.
b. Bought land for $50,000. Paid half in cash, with the remainder to be paid in six months.
c. Bought inventory costing $45,000, on account.
d. Sold inventory costing $35,000 to customers, on account, for $52,000.
e. Paid $1,000 of taxes that were owed from the previous period.
f. Borrowed $25,000 from a bank. The interest on the loan is 6% per year.
g. Depreciated equipment by $1,200.
h. Paid $750 for supplies to be used in the future.
i. Paid $250 to the power company for electricity used during the period.
j. Declared and paid dividends of $8,000.

  • CreatedJune 11, 2015
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