Question

a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value. b. The company paid $2,000 cash for rent of office space for the month. c. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $1,600 cash earned. e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days, f. The company purchased additional equipment for $5,000 cash. 9. The company paid an assistant $2,400 cash as wages for the month. h. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $18,000 cash to settle the liability created in transaction c. j. Owner withdrew $1,500 cash from the company for personal use. Required: Enter the impact of each transaction on individual items of the accounting equation (Enter decreases to account balances with a minus sign.) es Assets Liabilities Equity Cash + Accounts Receivable Equipment Accounts Payable M. Chen, Capital M. Chen, Withdrawals Revenues Expenses a b < Prev 10 of 12 ! Next >

Answer 1

Accounting equation

	Cash	+	Account receivable	+	Equipment	=	Accounts payable	+	M.Chen, Capital	-	M.Chen, withdrawals	+	Revenue	-	Expenses
a	60000				15000				75000
b	-2000														+2000
c					18000		18000
d	1600												1600
e			7300										7300
f	-5000				5000
g	-2400														+2400
h	4500		-4500
i	-18000						-18000
j	-1500										+1500