Relationship of the 3 items: Capital, Profit and Cash Illustration 2 (1) I started a business...

 

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Relationship of the 3 items: Capital, Profit and Cash Illustration 2 (1) I started a business and invested $10,000 cash in the firm's bank account. (2) I gave the firm my personal computer $8,000 for office use. (3) The firm sold the computer to my friend at a value of $8,500 and he promised to pay next month. (4) The firm received the money from my friend one month later. (5) The firm bought a notebook $9,000 by cheque for office use. (6) The firm borrowed $20,000 from my parents and deposited the money into the firm's bank account. (1) (2) (3) (5) (6) Total: Assets = = Liabilties + + Equity Relationship of the 3 items: Capital, Profit and Cash Illustration 2 (1) I started a business and invested $10,000 cash in the firm's bank account. (2) I gave the firm my personal computer $8,000 for office use. (3) The firm sold the computer to my friend at a value of $8,500 and he promised to pay next month. (4) The firm received the money from my friend one month later. (5) The firm bought a notebook $9,000 by cheque for office use. (6) The firm borrowed $20,000 from my parents and deposited the money into the firm's bank account. (1) (2) (3) (5) (6) Total: Assets = = Liabilties + + Equity

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Accounting equation Assets Liabilities Equity Accounting Equation for Each Scenario are as follows S... View the full answer