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

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Business

Alexis Schwartz

5 December, 05:16

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

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Orr · Answer 1

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.