Question: On September 1 Rosa Escobedo opened Self Confidence Tutoring Service

On September 1, Rosa Escobedo opened Self Confidence Tutoring Service.
Analyze the following transactions. Use the fundamental accounting equation form to record the changes in property, claims of creditors, and owner’s equity. (Use plus, minus, and equals signs.)
1. The owner invested $72,000 in cash to begin the business.
2. Purchased equipment for $32,000 in cash.
3. Purchased $12,000 of additional equipment on credit.
4. Paid $6,000 in cash to creditors.
5. The owner made an additional investment of $12,000 in cash.
6. Performed services for $8,400 in cash.
7. Performed services for $7,300 on account.
8. Paid $5,200 for rent expense.
9. Received $5,000 in cash from credit clients.
10. Paid $6,300 in cash for office supplies.
11. The owner withdrew $10,000 in cash for personal expenses.
Analyze: Which transactions increased the company’s debt? By what amount?

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  • CreatedAugust 08, 2014
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