Practice problems $1$ Chapter $1$

Do it yourself $1$

Record the following transactions into the basic accounting equation:

Cash $+$ Salon Equipment$=$Accounts Payable$+$ B$.$ Rey,Capital

$1.$ Bernie Rey invests $$20,000$ to open a hair salon company.

$2.$ The hair salon company buys new salon equipment for $$10,000,$ paying $$4,000$ cash and putting the balance on account.

Calculate the ending balances.

Do it Yourself $2$

Record the following transactions in the basic accounting equation:

$1.$ Gracie Ryan invests $$17,000$ to begin a real estate office.

$2.$ The real estate office buys $$600$ worth of computer equipment for cash.

$3.$ The real estate office buys $$500$ worth of additional computer equipment on account.

Do it Yourself $3$

Use the expanded accounting equation to solve for the missing amount.

Assets $$30,000$; Liabilities $?$; Owner$$s Capital, Beginning Balance $$15,000$; Revenues $$10,000$; Expenses $$3,000$; Withdrawals $$1,000$

Do it yourself $4$

Record the following transactions in the expanded accounting equation.

A$.$ B$.$ Bell invested $$60,000$ in Bell$$s Computer Company.

B$.$ Bought computer equipment on account, $$7,000.$

C$.$ Paid personal telephone bill from company bank account, $$200.$

D$.$ Received cash for services rendered, $$14,000.$

E$.$ Billed customers for services rendered for the month, $$30,000.$

F$.$ Paid current rent expense, $$4,000.$

G$.$ Paid supplies expense, $$1,500.$