Effect on the accounting equation-credits-debits


Question: Jane Dow opens an apartment-location business near a college campus. She has a sole proprietorship. During the first month of operation, she has the following transactions. Note the effect on the accounting equation (credits/debits) for each. Be sure to list each specific account impacted:

a. She invests $35,000 of personal funds to start the business

b. She purchases office supplies, on account, costing $350

c. She pays cash of $30,000 to acquire a lot. She plans to use the lot as a future site for her business office.

d. She locates apartments for clients and receives cash of $1,900.

e. She pays $100 on the account payable she created in transaction B.

f. She pays cash expenses for office rent of $400 and utilities of $100

g. She withdraws cash in the amount of $1200 for personal use.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Effect on the accounting equation-credits-debits
Reference No:- TGS01930733

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)