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16 August, 03:00

The following transactions were completed by the company.

a. The owner (Alex Carr) invested $15,000 cash in the company in exchange for its common stock.

b. The company purchased supplies for $500 cash.

c. The company purchased $10,000 in equipment on credit (record liability as Note Payable).

d. The company purchased $200 of additional supplies on credit.

e. The company purchased land for $9,000 cash.

Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) cash supplies equipment land accounts payable notes payable common stock dividends revenue expenses

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  1. 16 August, 03:36
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    a.

    Assets : Increases (Cash) $15,000

    Liabilities : No Effect

    Equity : Increases (Common Stock) $15,000

    b.

    Assets : Decrease (Cash) $500, Increase (Supplies) $500

    Liabilities : No Effect

    Equity : No Effect

    c.

    Assets : Increases (Equipment) $10,000

    Liabilities : Increases (Note Payable) $15,000

    Equity : No Effect

    d.

    Assets : Increases (Supplies) $15,000

    Liabilities : Increases (Accounts Payable) $15,000

    Equity : No Effect

    e.

    Assets : Increases (Land) $9,000, Decrease (Cash) $9,000

    Liabilities : No Effect

    Equity : No Effect

    Explanation:

    The Accounting Equation is : Assets = Equity + Liabilities

    So first determine the accounts affected in each transaction and determine their category in the elements of Accounting Equation.

    Finally indicate if the category is increasing or decreasing.
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