The following transactions occurred at several different businesses and are not related.

INSTRUCTIONS

Analyze each of the transactions. For each, decide what accounts are affected and set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs before the amounts to show the increases and decreases.

TRANSACTIONS

1. Hunter Thompson, an owner, made an additional investment of $21,000 in cash.

2. A firm purchased equipment for $10,000 in cash.

3. A firm sold some surplus office furniture for $1,700 in cash.

4. A firm purchased a computer for $3,700, to be paid in 60 days.

5. A firm purchased office equipment for $11,200 on credit. The amount is due in 60 days.

6. Nancy Fowler, owner of Fowler Travel Agency, withdrew $6,000 of her original cash

investment.

7. A firm bought a delivery truck for $37,000 on credit; payment is due in 90 days.

8. A firm issued a check for $3,500 to a supplier in partial payment of an open account balance.

Analyze: List the transactions that directly affected an owner’s equity account.