Question

iness near a historical DR Painting. During Mates 1 On March 1, 2016, David Richardson incorporated a painting business district, David was the sole shareholder of the company, which he named as DRD 2016 the company engaged in the following transactions: non stock to him. Sudan DR Painting received cash from David $ 40,000 and issued The business paid $ 20,000 in cash to acquire a truck. The business purchased supplies costing $ 1800 on account. The business painted a house for a client and received $ 3,000 cash The business painted a house for another client who agreed to pay next me The business paid $ 800 towards supplies purchased in transaction c. The business paid employees salary of $ 1,000 in cash. The business collected Cash $ 2600 from the client mentioned in transacti payment. You are required to show the above transactions in extended accounting equation.

Answer 1

Accounting Equation: Balance sheet Event Cash + Accounts + + + $40.000 + -$20,000 + + + + + + + du w ubi Assets = Liabilities + Stockholders' Equity + Truck + Inventory = Accounts Common Retained Receivable Payable Stock 'Earnings $40.000 + + $20,000 + $1.800 = $1.800 $3,000 $2.600 + $2.600 -$800 -$1,000 -$2,600 + $0 + $20,000 $1,800 = $1,000+ $40,000+ $4,600 $3,000 + + + + + + + + + + + + + + + + -S800 + -$1.000 + $2.600 + 2 900+ $23.800 + + + + Total +