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Sample Problem

Sample Problem. Chapter 2. Transaction #1. Assets = Liabilities + Owner’s Equity Cash +$9,000 +$9,000. Transaction #2. Assets = Liabilities + Owner’s Equity Cash $9,000 $9,000 Equipment + 4,000 Cash - 4,000. Transaction #3. Assets = Liabilities + Owner’s Equity Cash 9,000

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Sample Problem

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  1. Sample Problem Chapter 2

  2. Transaction #1 Assets = Liabilities + Owner’s Equity Cash +$9,000 +$9,000

  3. Transaction #2 Assets = Liabilities + Owner’s Equity Cash $9,000 $9,000 Equipment + 4,000 Cash - 4,000

  4. Transaction #3 Assets = Liabilities + Owner’s Equity Cash 9,000 -4,000 5,000 Equipment 4,000 9,000 Equipment Account Payable +1,500 +1,500

  5. Transaction #4 Assets = Liabilities + Owner’s Equity Cash 5,000 Equipment 4,000 +1,500 Accounts Payable 5,500 1,500 9,000 Cash Accounts Payable -750 -750

  6. Transaction #5 Assets = Liabilities + Owner’s Equity Cash Account Payable 5,000 1,500 - 750- 750 4,250 750 Equipment 5,500 9,000 Cash Investment +1,500 +1,500

  7. Transaction #6 Assets = Liabilities + Owner’s Equity Cash 4,250 9,000 +1,500+1,500 5,750 10,500 Equipment Accounts Payable 5,500 750 Cash Revenue +1,080 +1,080

  8. Transaction #7 Assets = Liabilities + Owner’s Equity Cash 5,750 10,500 +1,080+1,080 6,830 11,580 Equipment Accounts Payable 5,500 750 Account Receivable Revenue +780 +780

  9. Transaction #8 Assets = Liabilities + Owner’s Equity Cash 6,830 Account Receivable 11,580 780 + 780 Equipment Account Payable 12,360 5,500 750 Cash Expense -650 -650

  10. Transaction #9 Assets = Liabilities + Owner’s Equity Cash 6,830 12,360 - 650- 650 6,180 11,710 Accounts Receivable 780 Equipment Accounts Payable 5,500 750 Cash +550 Account Receivable -550

  11. Transaction #10 Assets = Liabilities + Owner’s Equity Cash 6,180 + 550 6,730 Accounts Receivable 780 -550 230 Equipment Accounts Payable 5,500 750 11,710 Cash -775 Supplies +775

  12. Transaction #11 Assets = Liabilities + Owner’s Equity Cash 6,730 - 775 5,955 Accounts Receivable 230 Equipment 5,500 Supplies Accounts Payable 775 750 11,710 Cash Withdrawal -1,000 -1,000

  13. Final Balances Assets = Liabilities + Owner’s Equity Cash Accounts Payable 5,955 750 11,710 -1,000-1,000 4,955 10,710 Accounts Receivable 230 Equipment 5,500 Supplies 775

  14. Analysis Transaction 3 increased the company’s debt by $1,500

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