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Homework answers / question archive / Indicate whether the account balances will increase or decrease and by how much, based on each transaction
Indicate whether the account balances will increase or decrease and by how much, based on each transaction. The first transaction has been completed. Ensure that the accounting equation is balanced.
| Transaction | Assets | Liabilities | Owner's Equity |
|---|---|---|---|
| Paid $200 cash for maintenance expenses. | -200 | -200 | |
| 1) The owner invested $7,620 in cash into the business. | |||
| 2) Paid $4,990 cash for one year of Insurance. | |||
| 3) Received a telephone bill for $200 which will be paid later. | |||
| 4) Purchased equipment worth $990 on account. | |||
| 5) Provided services and collected $3,900 in cash. | |||
| 6) Paid $900 towards the bank loan. | |||
| 7) Paid $55 interest related to the bank loan. | |||
| 8) Paid $600 of accounts payable. |
| Transaction | Assets | Liabilities | Owner's Equity |
|---|---|---|---|
| Paid $200 cash for maintenance expenses. | -200 | -200 | |
| 1) The owner invested $7,620 in cash into the business. | 7,620 | 7,620 | |
| 2) Paid $4,990 cash for one year of Insurance. | 4,990 | ||
| -4,990 | |||
| 3) Received a telephone bill for $200 which will be paid later. | 200 | -200 | |
| 4) Purchased equipment worth $990 on account. | 990 | 990 | |
| 5) Provided services and collected $3,900 in cash. | 3,900 | 3,900 | |
| 6) Paid $900 towards the bank loan. | -900 | -900 | |
| 7) Paid $55 interest related to the bank loan. | -55 | -55 | |
| 8) Paid $600 of accounts payable. | -600 | -600 | |
| Net Amounts | 10,755 | -310 | 11,065 |
| Net changes on Assets | 10,755 | ||
| = | |||
| Net changes on Liabilities and Owner's Equity (-310 + 11,065) | 10,755 |
