Linda Liu owns a tutoring service called Homework Helper. On October 30, Homework Helper's accounting equation...

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Linda Liu owns a tutoring service called Homework Helper. On October 30, Homework Helper's accounting equation indicated the following account balances. Use the form in your Working Papers to complete this problem. Trans No Sep Bat 1 Cash 2542 + Assets Accts Ree- 4Kids Daycare 1,266 + Supplies 1:100 Prepaid Insurance = 600 Liabilities +Owner's Equity Accts. Pay- Ashley Tech Services • 3,145 Linda Liu, Capital 7,362 Instructions: 1. For each transaction, complete the following: a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. White the amount in the appropriate columns, using a plus sign (+) if the account increases or a minus sign (-) if the account decreases. c for transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Calculate the new balance for each account in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. 2. Answer the following questions. Why can the owner of a business withdraw assets from that business for personal use? b Why would the owner withdraw assets other than cash? Transactions: 1. Took $300.00 of supplies for personal use. 2. Had computer repaired at Ashley Tech Services and agreed to pay Ashley Tech Services at a later date, $225.00 3. Linda Liu sold her personal book collection for $750.00 cash. 4. Paid Ashley Tech Services, $125.00 Linda Liu owns a tutoring service called Homework Helper. On October 30, Homework Helper's accounting equation indicated the following account balances. Use the form in your Working Papers to complete this problem. Trans No Sep Bat 1 Cash 2542 + Assets Accts Ree- 4Kids Daycare 1,266 + Supplies 1:100 Prepaid Insurance = 600 Liabilities +Owner's Equity Accts. Pay- Ashley Tech Services • 3,145 Linda Liu, Capital 7,362 Instructions: 1. For each transaction, complete the following: a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. White the amount in the appropriate columns, using a plus sign (+) if the account increases or a minus sign (-) if the account decreases. c for transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Calculate the new balance for each account in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. 2. Answer the following questions. Why can the owner of a business withdraw assets from that business for personal use? b Why would the owner withdraw assets other than cash? Transactions: 1. Took $300.00 of supplies for personal use. 2. Had computer repaired at Ashley Tech Services and agreed to pay Ashley Tech Services at a later date, $225.00 3. Linda Liu sold her personal book collection for $750.00 cash. 4. Paid Ashley Tech Services, $125.00

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SOLUTION To complete this problem we need to analyze each transaction record the effects on the accounts calculate the new balances and ensure that the accounting equation remains in balance Lets go t... View the full answer