The following transactions occurred at several different businesses and are not related.

Analyze each of the transactions. For each transaction, set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs to show the increases and decreases.
1. A firm purchased equipment for $32,000 in cash.
2. The owner, Gloria Bahamon, withdrew $8,000 cash.
3. A firm sold a piece of surplus equipment for $6,000 in cash.
4. A firm purchased a used delivery truck for $24,000 in cash.
5. A firm paid $7,200 in cash to apply against an account owed.
6. A firm purchased office equipment for $10,000. The amount is to be paid in 60 days.
7. Kevin Fralicks, owner of the company, made an additional investment of $40,000 in cash.
8. A firm paid $3,000 by check for office equipment that it had previously purchased on credit.
Analyze: Which transactions affect liability accounts?

  • CreatedAugust 08, 2014
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