1 Record each of the following Jackson Co events in Taccount

1 Record each of the following Jackson Co. events in T-accounts and then explain how the event affects the 2 accounting equation: (Leave no cells blank - be certain to enter \"O\" wherever required.) 4 a. Received $12,500 cash by issuing common stock. 5 b. Purchased supplies for $760 cash 6 C. Performed services on account for $4,000 7 d. Paid cash for $5,000 of salaries expenses Cash Common Stock Debit 10 Debit Credit Credit 12 13 14 b 15 16 17 18 19 C. 20 21 Cash Supplies Debit Credit Debit Credit Accounts Receivable Debit Service Revenue Credit Debit Credit 23 24 d Cash Salaries Expense Debit Debit Credit Credit 26

Solution

a. Cash Common Stock Debit Credit Debit Credit 12,500 12,500 b. Cash Supplies Debit Credit Debit Credit 760 760 c. Accounts receivable Service revenue Debit Credit Debit Credit 4,000 4,000 d. Cash Salaries expense Debit Credit Debit Credit 5,000 5,000 Accounting Equation Assets    = Liabilities + Stockholder\'s Equity The accounting equation should always balance the commmon stock issued for cash will increase asset and stockholder\'s Equity b. The supplies purchased will decrease an asset-cash and increase other asset-supplies c. services performed on account will increase asset-account receivable and increase stockholder\'s equity as income increases equity d. the salaries expene paid for cash will decrease asset-cash and decrease stockholders Equity