Question

1-11 Identifying effects of transactions using accounting equation-Assets and Liabilities LO P1 The following transactions were completed by the company. The owner (Alex Carr) invested $17,400 cash in the company. The company purchased supplies for $1,100 cash. The owner (Alex Carr) invested $11,200 of equipment in the company. The company purchased $320 of additional supplies on credit. The company purchased land for $10,200 cash. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

Answer 1

Assets = Liabilities + Capital

(cash) (supplies) (equipment) (land) (payables)

$17400 = $17400

-$1100 $1100 =

$11200 = $11200

$320 = $320

-$10200 $12200

The balance after all the transaction is :

Assets = Liabilities + Capital

$28920 = $320 + $28600