Question

1. Pandey Inc. had the following activities during the month:

A. Borrowed $7,000,000 cash, signing a promissory note.

B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000.

C. Rented equipment at a cost of $10,000 per month and issued a check covering six months' rent.

D. Provided $104,000 of services and billed customers.

E. Purchased $30,000 of supplies on account.

F. Received a utility bill for the current period in the amount of $1,200.

G. Raised sales prices on 200 units from $400 per unit to $440 per unit.

H. Received a 50% deposit from a customer on a $20,000 order to be filled next month.

I. Purchased 200 units of inventory for $400 per unit plus $1,000 shipping, on account

Analyze each of the activities (A) through (I) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (−) sign before each number to show its effect on the accounting equation. If the activity should not to be recorded as a transaction, enter the word "None" in the first column for that activity.

	Assets		Liabilities		Stockholders’ Equity
	Account(s)	Amount	Account(s)	Amount	Account(s)	Amount
A
B
C
D
E
F
G
H
I

Answer 1

	Assets		Liabilities		Stockholders' Equity
	Account(s)	Amount	Account(s)	Amount	Account(s)	Amount
A	Cash	+7000000	Notes Payable	+7000000
B	Building	+800000	Notes Payable	+600000
	Cash	-200000
C	Prepaid Rent	+60000
	Cash	-60000
D	Accounts Receivable	+104000			Service Revenue	+104000
E	Supplies	+30000	Accounts Payable	+30000
F			Accounts Payable/ Utilities Payable	+1200	Utilities Expense	-1200
G	None
H	Cash	+10000	Unearned Revenue/ Advance from customer	+10000
I	Inventory	+81000	Accounts Payable	+81000

Kindly select the accounts appropriately from those available since the list of accounts has not been provided. For any clarifications, you may write under the comments section.