Question

saved Help Save & + + Effects of transactions on elements of the accounting equation Some of the transactions carried out by Tudor Wholesale during the first month of the company's operations are listed below. Determine the effect of each transaction on the total assets, the total liabilities, and the owners' equity Write your answers in the box below, noting the letter (B-1) and then your answers. Each letter should have its own line your answer box Be sure to identify each transaction by letter and using the symbols (+) for increase for decrease, and (NC) for no change. An answer is provided for the first transaction to serve as an example Tel TON Owners Tractos Assets Les Et Ad captockia change for cash NC B. Dog landing at once ef $165.00 Meadowym $65,000 chatte puble for the balance C Bougaining lot for a paleng lot.det inte Du Son dhe ndon inced to Elon from FiPurchased the concret OPEL H. Cond part of towed so the tunnus trompacharel Lower portion of cash aces of cost El obato B IS * E А A This question will be sent to your instructor for going < Prev 36 of 45 Next > oa

Answer 1

Transaction	Total Assets	Total Liabilities	Owner equity
A Issued capital stock in exchange for cash	+	NC	+
B bought land and building at a total price of $165000. Made a down payment of $65000 cash and sign and notes payable for the balance	+	+	NC
C bought adjoining lot for use of parking lots ,paid cash in phone	NC	NC	Nc
D sold a portion of land on credit at a price equal to its cost	NC	NC	NC
E obtain a loan from Bank	+	+	NC
F purchase office equipment on credit	+	+	NC
G paid a liabilities	-	-	NC
H collected part of amount owned to the business from purchaser of land	NC	NC	NC
I sold another portion of land for cash at a price in excess of cost	+	NC	+

Explaintion of some itmes

B Due to use of notes payable some portion of amount $100,000 increase in liabilities also increase in total assets is amount to $100000 because $65000 decrease in cash so total assets are also increased by $100,000

C

Due due to purchase in cash increase in fixed assets but decrease in cash so the no change in total Assets and another portion like liabilities.

D

Sold portion of land in cash is equal to its cost so the decrease in fixed assets and increase in cash so the no change in total assets.

H

Collect the amount from the purchaser so the in increase in cash and decrease in notes receivable so the no change in total assets.

I

Sold part of land in cash its price excess of its cost due to Excess price increase (price-cost) total Assets and this is the profit so increase in increase in profit which is the part of owner equity.