![Page 1: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/1.jpg)
Sample Problem
Chapter 2
![Page 2: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/2.jpg)
Analyzing the effects of transactions on the accounting equation.
On September 1, Mireya Cortez opened Self Images Tutoring Service.InstructionsAnalyze the following transactions. Use the fundamental accounting equation form to record the changes in
property, claims of creditors, and owner’s equity. (Use plus, minus, and equals signs.)Transactions1. The owner invested $9,000 in cash to begin the business. 2. Purchased equipment for $4,000 in cash. 3. Purchased $1,500 of additional equipment on credit. 4. Paid $750 in cash to creditors. 5. The owner made an additional investment of $1,500 in cash. 6. Performed services for $1,080 in cash. 7. Performed services for $780 on account. 8. Paid $650 for rent expense. 9. Received $550 in cash from credit clients. 10. Paid $775 in cash for office supplies. 11. The owner withdrew $1,000 in cash for personal expenses.
![Page 3: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/3.jpg)
Transaction #1
Assets = Liabilities + Owner’s EquityCash
+$9,000 +$9,000
![Page 4: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/4.jpg)
Transaction #2
Assets = Liabilities + Owner’s EquityCash
$9,000 $9,000
Equipment
+ 4,000
Cash
- 4,000
![Page 5: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/5.jpg)
Transaction #3
Assets = Liabilities + Owner’s EquityCash
9,000
-4,000
5,000
Equipment
4,000 9,000
Equipment Account Payable
+1,500 +1,500
![Page 6: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/6.jpg)
Transaction #4
Assets = Liabilities + Owner’s Equity Cash
5,000
Equipment
4,000
+1,500 Accounts Payable
5,500 1,500 9,000
Cash Accounts Payable
-750 -750
![Page 7: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/7.jpg)
Transaction #5
Assets = Liabilities + Owner’s EquityCash Account Payable
5,000 1,500
- 750 - 750
4,250 750
Equipment
5,500 9,000
Cash Investment
+1,500 +1,500
![Page 8: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/8.jpg)
Transaction #6
Assets = Liabilities + Owner’s EquityCash
4,250 9,000
+1,500 +1,500
5,750 10,500
Equipment Accounts Payable
5,500 750
Cash Revenue
+1,080 +1,080
![Page 9: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/9.jpg)
Transaction #7
Assets = Liabilities + Owner’s EquityCash
5,750 10,500
+1,080 +1,080
6,830 11,580
Equipment Accounts Payable
5,500 750
Account Receivable Revenue
+780 +780
![Page 10: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/10.jpg)
Transaction #8
Assets = Liabilities + Owner’s EquityCash
6,830
Account Receivable 11,580
780 + 780
Equipment Account Payable 12,360
5,500 750
Cash Expense
-650 -650
![Page 11: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/11.jpg)
Transaction #9
Assets = Liabilities + Owner’s EquityCash
6,830 12,360
- 650 - 650
6,180 11,710
Accounts Receivable
780
Equipment Accounts Payable
5,500 750
Cash
+550
Account Receivable
-550
![Page 12: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/12.jpg)
Transaction #10
Assets = Liabilities + Owner’s EquityCash6,180+ 5506,730Accounts Receivable 780-550 230Equipment Accounts Payable5,500 750 11,710
Cash-775Supplies+775
![Page 13: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/13.jpg)
Transaction #11
Assets = Liabilities + Owner’s EquityCash6,730- 7755,955Accounts Receivable230Equipment5,500Supplies Accounts Payable775 750 11,710
Cash Withdrawal-1,000 -1,000
![Page 14: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/14.jpg)
Final Balances
Assets = Liabilities + Owner’s EquityCash Accounts Payable
5,955 750 11,710
-1,000 -1,000
4,955 10,710
Accounts Receivable
230
Equipment
5,500
Supplies
775
![Page 15: Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring](https://reader034.vdocuments.mx/reader034/viewer/2022042821/56649cc95503460f9499162c/html5/thumbnails/15.jpg)
Analysis
Transaction 3 increased the company’s debt by $1,500