Bill Gates, entrepreneur, opened a computer business and completed the following transactions in May. Show the...
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Bill Gates, entrepreneur, opened a computer business and completed the following transactions in May. Show the effects of the transactions on the accounting equation below. Show that the accounting equation balances. (a) B. Gates, Owner invested $65,000 cash in the business (b) Purchased computer equipment for $26,000 on credit (c) (d) Received $75,000 cash for computer services performed in May Paid $15,000 for a portion of the computer equipment purchased in (b) above (e) Billed $48,000 to customers who used credit to purchase computer services performed in May (f) Gates withdrew $10,000 cash from the business (g) Paid $9,000 for rent for May Assets a b C d e f g Balances + Accounts Cash Receivable Equipment = Liabilities + + Accounts Payable Equity + + Bill Gates Capital Bill Gates Withdrawals Revenues Expenses Bill Gates, entrepreneur, opened a computer business and completed the following transactions in May. Show the effects of the transactions on the accounting equation below. Show that the accounting equation balances. (a) B. Gates, Owner invested $65,000 cash in the business (b) Purchased computer equipment for $26,000 on credit (c) (d) Received $75,000 cash for computer services performed in May Paid $15,000 for a portion of the computer equipment purchased in (b) above (e) Billed $48,000 to customers who used credit to purchase computer services performed in May (f) Gates withdrew $10,000 cash from the business (g) Paid $9,000 for rent for May Assets a b C d e f g Balances + Accounts Cash Receivable Equipment = Liabilities + + Accounts Payable Equity + + Bill Gates Capital Bill Gates Withdrawals Revenues Expenses
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Transaction a Bill Gates invested 65000 cash in the business Assets Cash increase by 65000 Equity B... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
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