Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity.
1. Purchase equipment for $43,000 in cash
2. Receive payment of $11,000 owed by a customer
3. Buy $14,000 worth of manufacturing supplies on credit
4. Issue $70,000 in stock
What is the net change in Total Equity?
Accounting equation
| Assets | = | Liabilities | + | equity | |
| 1 |
43000 -43000 |
NA | NA | ||
| 2 |
11000 -11000 |
NA | NA | ||
| 3 | 14000 | 14000 | NA | ||
| 4 | 70000 | 70000 | |||
So Net change in total equity = $70000
Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity....
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