Question

​Investments, Inc., began by issuing common stock for cash of $260,000. The company immediately purchased computer equipment on account for $116,000. 1. The following​ T-accounts of SeventhSeventh ​Investments, Inc. have been opened for​ you: Cash, Computer​ Equipment, Accounts​ Payable, and Common Stock. Record the first two transactions of the business directly in the​ T-accounts without using a journal. 2. Show that total debits equal total credits.

Answer 1

Answer:

If we add up the debit we got: 260,000 + 116,000 = 376,000

adding the credit we also get the same amount:

260,000 + 116,000 = 376,000

the accounting equation will be:

Assets 376,000 = Liabilities 116,000 + Equity 260,000

Explanation:

CASH

DEBIT   CREDIT

260,000

EQUIPMENT

DEBIT CREDIT

116,000

ACCOUNTS PAYABLE

DEBIT        CREDIT

                  116,000

COMMON STOCK

DBEIT   CREDIT

             260,000