Learning Objective : Analyze the impact of business transactions on accounts.
Robinson Investments, Inc., began by issuing common stock for cash of $200,000. The company immediately purchased computer equipment on account for $56,000.
1. Set up the following T-accounts of Robinson Investments, Inc.: Cash, Computer Equipment, Accounts Payable, and Common Stock.
2. Record the first two transactions of the business directly in the T-accounts without using a journal.
3. Show that total debits equal total credits.