Assume that the $5,000 purchase of roofing equipment on July 3 was financed from an owner investment of another $5,000 cash in the business in exchange for more common stock (instead of the purchase conditions described in the transaction above). Compute the dollar effect of this change on the month-end amounts for:

a) assets

b) liabilities

c) total equity

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u01a1 Problem 1-9B Part 1 Date Cash + + + Assets Liabilities + Accounts Office Office Electrical Accounts Receivable Supplies Equipment Equipment Payable = Equity + = + Jul. 1 80,000 Common Stock 80,000 Dividends + Revenues - Expenses 2 (700) Bal. 79,300 80,000 700 700 3 (1,000) 5,000 4,000 Bal. 78,300 5,000 = 4,000 80,000 700 6 (600) 600 Bal. 77,700 600 5,000 = 4,000 80,000 700 8 7,600 7,600 Bal. 85,300 600 5,000 = 4,000 80,000 7,600 700 10 2,300 2,300 Bal. 85,300 600 2,300 5,000 = 6,300 80,000 7,600 700 15 8,200 8,200 Bal. 85,300 8,200 600 2,300 5,000 = 6,300 80,000 15,800 700 17 3,100 3,100 Bal. 85,300 8,200 3,700 2,300 5,000 = 9,400 80,000 15,800 700 23 (2,300) (2,300) Bal. 83,000 8,200 3,700 2,300 5,000 = 7,100 80,000 15,800 700 25 5,000 5,000 Bal. 83,000 13,200 3,700 2,300 5,000 = 7,100 80,000 20,800 700 20 28 8,200 (8,200) Bal. 91,200 5,000 3,700 2,300 5,000 = 7,100 80,000 20,800 700 30 (1,560) 1,560 Bal. 89,640 5,000 3,700 2,300 5,000 = 7,100 80,000 20,800 2,260 31 (295) 295 Bal. 89,345 5,000 3,700 2,300 5,000 = 7,100 80,000 20,800 2,555 31 (1,800) 1,800 Bal. 87,545 5,000 3,700 2,300 5,000 = 7,100 80,000 1,800 20,800 2,555 u01a1 Problem 1-9B Part 1 Date Cash + + + Assets Liabilities + Accounts Office Office Electrical Accounts Receivable Supplies Equipment Equipment Payable = Equity + = + Jul. 1 80,000 Common Stock 80,000 Dividends + Revenues - Expenses 2 (700) Bal. 79,300 80,000 700 700 3 (1,000) 5,000 4,000 Bal. 78,300 5,000 = 4,000 80,000 700 6 (600) 600 Bal. 77,700 600 5,000 = 4,000 80,000 700 8 7,600 7,600 Bal. 85,300 600 5,000 = 4,000 80,000 7,600 700 10 2,300 2,300 Bal. 85,300 600 2,300 5,000 = 6,300 80,000 7,600 700 15 8,200 8,200 Bal. 85,300 8,200 600 2,300 5,000 = 6,300 80,000 15,800 700 17 3,100 3,100 Bal. 85,300 8,200 3,700 2,300 5,000 = 9,400 80,000 15,800 700 23 (2,300) (2,300) Bal. 83,000 8,200 3,700 2,300 5,000 = 7,100 80,000 15,800 700 25 5,000 5,000 Bal. 83,000 13,200 3,700 2,300 5,000 = 7,100 80,000 20,800 700 20 28 8,200 (8,200) Bal. 91,200 5,000 3,700 2,300 5,000 = 7,100 80,000 20,800 700 30 (1,560) 1,560 Bal. 89,640 5,000 3,700 2,300 5,000 = 7,100 80,000 20,800 2,260 31 (295) 295 Bal. 89,345 5,000 3,700 2,300 5,000 = 7,100 80,000 20,800 2,555 31 (1,800) 1,800 Bal. 87,545 5,000 3,700 2,300 5,000 = 7,100 80,000 1,800 20,800 2,555

Answer rating: 100% (QA)

Answer To compute the dollar effect of the change on the monthend amounts for assets l... View the full answer