Question

Strand invested $25,000 in the business in exchange for common stock

Strand purchased equipment costing $10,000 by borrowing from the bank

Strand sold $100,000 worth of consulting services on account

Strand paid Wages of $50,000 and Rent of $25,000

Strand purchased $2,000 of supplies on account

Strand collected $75,000 from customers sold to on account (#3 above)

Strand paid the bank 50% of what they owed them

A) account for the following transactions using the Accounting Equation above (use 1 row for each transaction)

ASSETS

=

LIABILITIES

+

EQUITY

Transaction#

Accounts

Accounts

Notes

Common

----Retained Earnings-----

Cash

Equipment

Receivable

Supplies

Payable

Payable

Stock

Account

needs to be charted?

Answer 1

	Assets								Liabilities				Shareholders equity
Event	Cash	+	Accounts receivable		Supplies	+	Equipment	=	Accounts payable	+	Notes payable		Common		Retained earnings
													Stock	+	Revenue	-	Expense
1	25000												25000
2							10000				10000
3			100000												100000
4	-75000																-75000
5					2000				2000
6	75000		-75000
7	-5000										-5000