Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. Record this transaction in the

Question

notka56 [123]

3 years ago

13

Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. Record this transaction in the

accounting equation by:

Business

1 answer:

Alexeev081 [22] · Answer 1 · 2021-11-08T16:14:27+03:00

Answer:

Explanation:

The accounting equation is shown below:

Total assets = Total liabilities + Shareholder's equity

In the given transaction, the office equipment was purchased for $3,000 and it is paid immediately which means the balance of office equipment is increased and the cash balance is decreased.

It gives a positive impact on office equipment under fixed assets and a negative impact on the cash balance under the current assets.