Homework SoursePaid 5400 to a creditor on account Show how each transaction
Paid $5,400 to a creditor on account.
Show how each transaction would be recorded in the accounting equation.
| 1. | John Amos started the business with a cash investment of $41,000. | |
| 2. | Purchased equipment for $12,500 on credit. | |
| 3. | Performed services for $4,000 in cash. | |
| 4. | Purchased additional equipment for $2,700 in cash. | |
| 5. | Performed services for $4,100 on credit. | |
| 6. | Paid salaries of $3,500 to employees. | |
| 7. | Received $1,300 cash from charge account customers. | |
| 8. | Paid $5,400 to a creditor on account.
|
Solution
S.No
Particulars
Debit
Credit
1
Cash
41000
Capital
41000
2
Equipment
12500
Account Payable
12500
3
Cash
4000
Service fee
4000
4
Equipment
2700
Cash
2700
5
Account Receivable
4100
Service Fee
4100
6
Salary
3500
Cash
3500
7
Cash
1300
Account Receivable
1300
8
Account Payable
5400
Cash
5400
| S.No | Particulars | Debit | Credit |
| 1 | Cash | 41000 | |
| Capital | 41000 | ||
| 2 | Equipment | 12500 | |
| Account Payable | 12500 | ||
| 3 | Cash | 4000 | |
| Service fee | 4000 | ||
| 4 | Equipment | 2700 | |
| Cash | 2700 | ||
| 5 | Account Receivable | 4100 | |
| Service Fee | 4100 | ||
| 6 | Salary | 3500 | |
| Cash | 3500 | ||
| 7 | Cash | 1300 | |
| Account Receivable | 1300 | ||
| 8 | Account Payable | 5400 | |
| Cash | 5400 |
