Brief Exercise $2-30($Algorithmic$)$

Transaction Analysis

Galle Inc. entered into the following transactions during January.

a$.$ Borrowed $$100,000$ from First Street Bank by signing a note payable.

b$.$ Purchased $$25,000$ of equipment for cash.

c$.$ Paid $$1,000$ to landlord for rent for January.

d$.$ Performed services for customers on account, $$10,000.$

e$.$ Collected $$3,000$ from customers for services performed in Transaction d$.$

f$.$ Paid salaries of $$7,500$ for the current month.

Required:

Show the effect of each transaction using the following model. If an amount box does not require an entry, leave the cells blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item, enter $"0"$ since the net effect on the item is zero.

a$.$

b$.$

c$.$

d$.$

e$.$

f$.$

f$.$

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