Answer:
Date : August 1
Assets (Cash $8,000 and Equipment $34,400) = Increase $42,400
Liabilities = No Effect
Equity (Capital $42,400) = Increase $42,400
Date : August 2
Assets (Cash and Equipment) = $3,300 decrease -cash and $3,300 increase - equipment
Liabilities = No effect
Equity = No Effect
Date : August 5
Assets (Cash and Supplies) = $1,520 decrease -cash and $1,520 increase - equipment
Liabilities = No effect
Equity = No Effect
Date : August 20
Assets (Cash ) = Increase $2,100
Liabilities = No Effect
Equity (Services Revenue) = Increase $2,100
Date : August 31
Assets (Cash = Decrease $881
Liabilities = No Effect
Equity (Utilities Expense) = Decrease $881
Explanation:
The accounting equation is stated as : Assets = Equity + Liabilities
Each and every transaction first identify the Accounts affected, then determine which accounts fall within the Asset, Equity or Liabilities category and the effect thereof to the category.
