Question

Joe Evans opened a fishing supply store named Evans Bait & Tackle, Inc. The following transactions occurred during its first month. Enter each transaction into the accounting equation and identify an increase or decrease to assets, liabilities, shareholder’s equity, revenues, or expenses.
1. Joe Evans used $100,000 of personal savings in exchange for common stock, and the business borrowed $50,000 from the bank to start the business.
2. The business purchased a small building for $75,000.
3. The business purchased $10,500 worth of inventory.
4. The business paid operating expenses of $1,315 the first month.
5. Evans Bait & Tackle, Inc., sold $5,250 of its inventory to customers for $7,875.
All the transactions were for cash. Use the followingformat:


$1.99
Sales1
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  • CreatedSeptember 01, 2014
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