Question

THIS IS FOR ELEMENTARY ACCOUNTING, NOT financial accouting !!!!!

Transactions Record the following transactions using the Accounting Equation Transaction 1. Purchased supplies for $750.00 on account. Transaction 2. Provided services of $8,000.00 to patients on account. Transaction 3. Paid a premium of $3,000.00 for a 3 year insurance policy. Transaction 4. Prepaid insurance expired $1,000.00. Transaction 5. Received $2,000.00 in advance of services yet to be performed. Transaction 6. Supplies used up $500.00. Transaction 7. Sold merchandise on account $20,000.00 terms 1/10,n/30. The cost of the merchandise was $14,000.00 Transaction 8. Received check for the amount due from sale in transaction 7. Customer was entitled to discount Transaction 9. Purchased merchandise on account for $33,000.0 terms 2/10,n/30. Paid invoice in transaction 9. Payment made within discount period. Transaction 10.

Answer 1

Accounting Equation : Total Assets = Total Liabilities + Shareholders' Equity
	Total Assets ($)					=	Total of Liabilities & shareholders' equity ($)
Tranaction No.	Inventory	Cash	Prepaid Insurance	Accounts Receivable	Total ($)	=	Liabilities	Equity	Total ($)
1	750	0	0	0	750		750		750
Balance	750	0	0	0	750	=	750	0	750
2	0	0	0	8000	8000		0	8000	8000
Balance	750	0	0	8000	8750	=	750	8000	8750
3	0	-3000	3000	0	0		0	0	0
Balance	750	-3000	3000	8000	8750	=	750	8000	8750
4	0	0	-1000	0	-1000		0	-1000	-1000
Balance	750	-3000	2000	8000	7750	=	750	7000	7750
5	0	2000	0	0	2000		2000	0	2000
Balance	750	-1000	2000	8000	9750	=	2750	7000	9750
6	-500	0	0	0	-500		0	-500	-500
Balance	250	-1000	2000	8000	9250	=	2750	6500	9250
7	0	0	0	20000	20000		0	20000	20000
Balance	250	-1000	2000	28000	29250	=	2750	26500	29250
8	0	19800	0	-20000	-200		0	-200	-200
Balance	250	18800	2000	8000	29050	=	2750	26300	29050
9	33000	0	0	0	33000		33000	0	33000
Balance	33250	18800	2000	8000	62050	=	35750	26300	62050
10	0	-32340	0	0	-32340		-33000	660	-32340
Balance	33250	-13540	2000	8000	29710	=	2750	26960	29710
Note : Effect for any item relating to Income statement has been given in equity. For example : Provided services of 8,000$ is our revenue and hence it has been added to equity. Similarly expenses have been subtracted from equity.