Analyze the accounting equation effects of the transactions in M2- 19 using the format shown in the

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Analyze the accounting equation effects of the transactions in M2- 19 using the format shown in the chapter and compute total assets, total liabilities, and total stockholders’ equity.
a. Blue Light Arcade received $ 50 cash on account for a birthday party held two months ago.
b. Agreed to hire a new employee at a monthly salary of $ 3,000. The employee starts work next month.
c. Paid $ 2,000 for a table top hockey game purchased last month on account.
d. Repaid a $ 5,000 bank loan that had been outstanding for six months. (Ignore interest.)
e. The company purchased an air hockey table for $ 2,200, paying $ 1,000 cash and signing a short- term note for $ 1,200.
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Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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