Question

ness near a historical ho DR Painting. During Match 01. On March 1, 2016, David Richardson incorporated a painting business district, David was the sole shareholder of the company, which he named as DR D 2016 the company engaged in the following transactions: sued common stock to him. Sudan DR Painting received cash from David $ 40,000 and issued common stor 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 mo 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 transaction payment. You are required to show the above transactions in extended accounting equation.

Answer 1

		Assets			=	Liabilities	+	Owners capital	+	revenue	-	Expenses	-	Owner's Draws
	Receivables	Cash	Supplies	Equipment								Salaries
a		40,000						40000
b		-20000		20,000
c			1800			1800
d		3000								3000
e	2600									2600
f		-800				-800
g		-1000										1000
h	-2600	2600
	Total	45600		=		1000	+	40000	+	5600	-	1000		0

From the Above table Note that

Assets =Liabilities+Owner's equity +revenue-expense-Owner's draw

45600=1000+40000+5600-1000-0