Question

Indicate the effects of the following business transactions on the accounting equation for Sam's Snack Foods, a supplier of snack foods. Transaction (a.) is answered as a guide. 

 a. Sam's Snack Foods received cash from the owner and gave capital.

 Answer: Increase asset (Cash); Increase equity (Sam, Capital)

 b. Cash purchase of land for a building site.

 C. Paid cash on accounts payable.

 d. Purchased equipment; signed a note payable.

 e. Performed service for a customer on account.

 f. Employees worked for the week but will be paid next Tuesday.

 g. Received cash from a customer on accounts receivable.

 h. Borrowed money from the bank.

 i. Owner withdrew cash.

 j. Incurred utilities expense on account.

Answer 1

Answer 2