CHAPTER sued a shortterm note payable for the balance of the

CHAPTER sued a short-term note payable for the balance of the purehase price. 4 In the space below, indicate the effect of each of the following transactions on various balance sheet items of the Billiard Den. Indicate the new account balanees after the transaction of July 3 and each subsequent transaction. (The effects of the July 1 trans- action are already filled in to provide you 10 Purchased 10 pool tables for $1,000 each, paying $6,000 cash and agreeing to pay the balanee due in 30 days 14 Sold one pool table to a friend for $1,000. The friend paid $500 eash to the Billiard Den and promised to pay the balance within 30 days. with an example.) Robert Neal began the business by de- positing $20,000 eash in a bank account 20 Paid $2,000 of the amount owed on the 24 Collected $200 from the friend who had 30 Purchased one used pool table from July 1 pool tables. bought the pool table another pool hall, paying $600 cash. in the name of the business. 3 Purchased an existing pool hall at a price of $21,000 for the land and $30,000 for the building. Neal paid the former owner $10,000 in cash and is- Owners Equity Assets Notes Accounts R. Neal Cash Receivable Land Building Tables Payable Payable Capital +$20,000 Pool July , 0,000 Balances 14 Balances Balances 24 Balances Balances

Solution

30000

30000

30000

300

30000

$300

	Assets	=	Liabilities	+	Owner\'s equity
	Cash	Accounts receivables	Land	Buildings	Pool Tables	=	Notes payable	Accounts payable	+	R Neal, capital
July 1	20000									20000
3	(10000)		21000	30000		=	41000
Balance	10000		21000	30000		=	41000			20000
10	(6000)				10000	=		4000
Balance	4000		21000	30000	10000	=	41000	4000		20000
14	500	500			(1000)	=
Balance	4500	500	21000	30000	9000	=	41000	4000		20000
20	(2000)					=		(2000)
Balance	2500	500	21000	30000	9000	=	41000	2000		20000
24	200	(200)				=
Balance	2700	300	21000	30000	9000	=	41000	2000		20000
30	(600)				600	=
Balance	$2100	$300	$21000	$30000	$9600	=	$41000	$2000		$20000