Problem 2-9a effect of transactions on accounting equation ebook

Get your original paper written from scratch starting at just $10 per page with a plagiarism report and free revisions included!









Hire A Writer

Problem 2-9A
Effect of Transactions on Accounting Equation

eBook Learning Objective 3Learning Objective 4

Jay Pembroke started a business. During the first month (April 20–), the following transactions occurred.

  1. Invested cash in business, $18,000.
  2. Bought office supplies for $4,600: $2,000 in cash and $2,600 on account.
  3. Paid one-year insurance premium, $1,200.
  4. Earned revenues totaling $3,300: $1,300 in cash and $2,000 on account.
  5. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,300.
  6. Paid office rent for the month, $750.
  7. Withdrew cash for personal use, $100.


Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner’s Equity (Capital – Drawing + Revenues – Expenses). After transaction (g), report the totals for each element. If an amount box does not require an entry, leave it blank.

Assets = Liabilities + Owner’s Equity
  Cash + Accounts Receivable + Office Supplies + Prepaid Insurance = Accounts Payable + J. Pembroke, Capital J. Pembroke, Drawing + Revenues Expenses   Description
g. [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]    
Bal. [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]   [removed][removed]    

Demonstrate that the accounting equation has remained in balance.

Cash $[removed][removed]
Accounts receivable [removed][removed]
Office supplies [removed][removed]
Prepaid insurance [removed][removed]
Total Assets $[removed][removed]
Accounts payable $[removed][removed]
Jay Pembroke, capital [removed][removed]
Jay Pembroke, drawing [removed][removed]
Service fees [removed][removed]
Rent expense [removed][removed]
Total Liabilities and Owner’s Equity $[removed][removed]

Stay Anonymous
With Our Essay Writing Service

The aim of our service is to provide you with top-class essay help when you ask us to write my paper; we do not collect or share any of your personal data. We use the email you provide us to send you drafts, final papers, and the occasional promotion and discount code, but that’s it!

Order Now