Question

UUUN Calculator Effect of Transactions on Accounting Equation Jay Pembroke started a business. During the first month (April 20-), the following transactions occurred. a. Invested cash in business, $19,500. b. Bought office supplies for $4,500: $2,100 in cash and $2,400 on account. c. Paid one-year insurance premium, $1,400. d. Earned revenues totaling $3,300: $1,400 in cash and $1,900 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,050. f. Paid office rent for the month, $650. g. Withdrew cash for personal use, $100. Required: Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets - Liabilities + Owner's Drawing + Revenues - Expenses). After transaction (g), report the totals for each element. Use the minus sign to indicate a decreas the account. If an amount box does not require an entry, leave it blank. Assets Liabilities + Owner's Equity (Amts. Owed) (Items Owned) CE (Owner's Investment) J. Cash Accounts Receivable Office Supplies Prepaid Insurance Revenue Accounts Payable J. + Pembroke, Capital Pembroke. + Drawing Prene

Answer 1

Jay Pembroke- Horizontal
Asset		Liabilities		Owner's Equity
S. No.	Cash	+	Account Receivable	+	Office Supplies	+	Prepaid Insurance	=	Account Payable	+	Pembroke, Capital	-	Pembroke, Drawings	+	Revenue	-	Expense
a.	$19,500.00										$19,500.00
b.	-$2,100.00				$4,500.00				$2,400.00
c.	-$1,400.00						$1,400.00
d	$1,400.00		$1,900.00												$3,300.00
e	-$2,050.00								-$2,050.00
f	-$650.00																$650.00
g	-$100.00												$100.00
Totals	$14,600.00		$1,900.00		$4,500.00		$1,400.00		$350.00		$19,500.00		$100.00		$3,300.00		$650.00

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