Question

The following transactions were completed by the company a. The owner invested $19,000 cash in the company in exchange for its common stock. b. The company purchased supplies for $1,500 cash c. The owner invested $12,000 of equipment in the company in exchange for more common stock. d. The company purchased $400 of additional supplies on credit. e. The company purchased land for $11,000 cash Required Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities+ Accounts Equity CommonD Cash +Supplies + Equipment+ Land Dividends Revenue +Revenue Expenses Payable Stock $19,000+ Bal 19,000 Bal 19,000 + Bal 19,000 + 0 Bal 19,000 + 0

Answer 1

Answer:

                      ASSETS                               = LIABILITIES     +  EQUITY  

cash        supplies       equip.        land     =  acc. payable common stock

19,000                                                                                       19,000

-1,500     1,500

                                    12,000                                                  12,000

               400                                                400

-11,000                                           11,000                                                          

6,500      1,900           12,000       11,000  = 400                     31,000

Explanation:

Dr cash 19,000

    Cr common stock 19,000

Dr supplies 1,500

    Cr cash 1,500

Dr equipment 12,000

    Cr common stock 12,000

Dr supplies 400

    Cr accounts payable 400

Dr land 11,000

    Cr cash 11,000