Question: A fellow accounting student has difficulty understanding how the fundamental accounting equation stays in balance when a compound entry with one debit and two credits

A fellow accounting student has difficulty understanding how the fundamental accounting equation stays in balance when a compound entry with one debit and two credits is recorded. Consider, for example, that a business bought equipment for $ 7,000, paid $ 3,000 in cash, and placed the remainder on account.
This means that there are two credits and one debit— one debit and one credit on the left side of the equation and the other credit on the right side of the equation. Explain to your fellow student how the equation stays in balance.

Step by Step Solution

★★★★★

3.45 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

First debits must equal credits in a transaction Second it is ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

339-B-A-A-C (4581).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Consider your tastes for right and left shoes. A: Suppose you, like most of us, are the kind of person that is rather picky about having the shoes you wear on your right foot be designed for right...

This is for AC1420: Week 2 trial balance (ITT Tech) not sure exactly where to start if someone can help Based on the lesson presentation and readings for this week, prepare a one- to two-page...

On November 1, 2022, the following were the account balances of Sunland Equipment Repair. Debit Credit Cash $ 3,420 Accumulated Depreciation-Equipment $ 500 Accounts Receivable 3,100 Accounts Payable...

Please read Introduction to Finance Basics from the HBR course pack before responding to these questions. Students who google the answers to this discussion forum will be given a zero. Students must...

Discuss as comprehensively as possible, the extent to which a business can enter into a transaction that affects only the left side of the basic accounting equation. Cite at least two or three...

Needing ANSWERS ASAP! Starting at pg 34 - Labeled Graded Project 06155200: Graded Project Instructions & Worksheets 1 Lesson 1: Business, Accounting, and You PROJECT GOAL The goal of this graded...

accounting general ledger ...attached is the information The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.: Balance sheet Income statement...

I need help with a last minute Accounting 1 assignment. My regular tutor is off the grid so I am looking for a replacement. I have created the outline for you and enclosed the rubric, plus all f the...

I need help with following questions from the homework. I have attached the chapters so please see the attached files to answer the following questions specifically. Ch 4 (p 176 of text or p 34 of...

I need help . Full answer and Solution please PLAYING THE ACCOUNTING EQUATION 1. Naruto Uzumaki is an owner of Konoha Enterprises, a sole proprietorship. The company's total assets is PhP726,000. The...

Mr. Atia Azuure was employed by Northern Star Tomatoes Ltd on 1st September 2014 on salary scale of GHC36,000 * 6,000 66,000 per annum as the financial controller of the company. He is provided with...

Which of the following is NOT a step in market research process?. a. Research design b. Data Collection O c. Research Findings d. Customer services

Sage Corporation March 3 1 , 2 0 2 6 \ table [ [ , Dr , Cr ] , [ Cash , $ 2 2 , 0 0 0 , ] , [ Accounts receivable, 4 4 , 0 0 0 , ] , [ Inventory , December 3 1 , 2 0 2 5 , 8 2 , 5 0 0 , ] , [ Land ,...

Consider the following transactions associated with accounts receivable and the allowance for uncollectible accounts. Required: For each transaction, indicate whether it would increase (I), decrease...

What steps should a business take in making a capital budgeting decision? What steps did Kay take in making a capital budgeting decision? Compare your answers.

On October 31, 2014, Blossom Floral Supply had a $ 180,000 debit balance in Accounts Receivable and a $ 7,200 credit balance in Allowance for Bad Debts. During November, Blossom made the following...

Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Instructions 1. Determine for each note (A) the due date and (B)...

List any errors you can find in the following partial balance sheet: Napa Vino Company Balance Sheet December 31, 20Y9 Assets Current assets: Cash...

4. Attorneys must testify against other attorneys who misrepresent credentials in public advertisements.

Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, "If your pet is not becoming to you, he should be coming to us." The Harlands maintain a sales tax payable...

Wholesale Health Supply sells a variety of medical equipment and supplies to retailers. When a new retailer is approved for credit, one of the criteria is that the retailer must have been in business...

Enter the following transactions in a general journal: June 4 Sold merchandise on account to T. Allen, $1,500.00 plus 6% sales tax, with 1/10, n/30 cash discount terms. 7 Sold merchandise on account...

Optimization Problem? Firebreaks is a fire management technique, which reduce the damage done by forest fires. A firebreak is a strip where trees have been removed in a forest so that a fire started...

8. There is a project being considered that has an initial cost of $5,000. The first year profit is $500 and profits are expected to increase by 50% every year after that. Project costs are expected...

For the linear relationships below: assign a correlation coefficient (r) to each: Scatterplot 1 Scatterplot 2 Scatterplot 3 120 170 150 100 100 - 16S BO GO -O 160 Jack O 150 160 170 180 50 54 150 160...