What is the effect on assets, liabilities and shareholders’ equity of each of the following transactions?

1. Issued $200 000 in shares to new shareholders2. Purchased $30 000 of inventory on credit3. Borrowed $80 000 from the bank4. Paid $20 000 to accounts payable5. Purchased equipment costing $25 000 on credit6. Received $9 000 from a debtor

Prepare journal entries for the above transactions

Answer rating: 100% (QA)

1 Issued 200000 in shares to new shareholders Assets Cash increases by 200000 Shareholders Equity Co... View the full answer