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Business, 25.01.2020 03:31 miathegeek97
Zen began a new consulting firm on january 5. the accounting equation showed the following balances after each of the company’s first five transactions. analyze the accounting equation for each transaction and match the given transaction with its most likely description.
assets = liabilities + equity
transaction cash + accounts receivable + office supplies + office furniture = accounts payable + common stock + revenues
a. $ 40,000 + $ 0 + $ 0 + $ 0 = $ 0 + $ 40,000 + $ 0
b. 38,000 + 0 + 3,000 + 0 = 1,000 + 40,000 + 0
c. 30,000 + 0 + 3,000 + 8,000 = 1,000 + 40,000 + 0
d. 30,000 + 6,000 + 3,000 + 8,000 = 1,000 + 40,000 + 6,000
e. 31,000 + 6,000 + 3,000 + 8,000 = 1,000 + 40,000 + 7,000
transaction description
a. started the business with the owner investing cash in the business in exchange for common stock
b. purchased office supplies, paid in cash and on credit
c. purchased office furniture by paying cash
d. billed a customer for services rendered
e. provided services for cash
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Zen began a new consulting firm on january 5. the accounting equation showed the following balances...
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