Nov.

1 Michael McBryan started the business by

depositing $80,000 in a company bank account.

Nov.3 Purchased land for $52,000, paying cash.

Nov.5 Purchased a building for $36,000, paying

$6,000 in cash and issuing a note payable for the
remaining $30,000.

Nov.17 Purchased tools and equipment on account

$13,800.

Nov.20 Sold some of the tools at a price equal to their

cost, $1,800, collectible within 45 days.

Nov.25 Received $600 in partial collection of the

account receivable from the sale of tools.

Nov.26 Paid $6,800 in partial payment of an account

payable.

Nov.30 Recorded $2,200 of sales revenue received in

cash.

Nov.30 Paid $1,400 of operating expenses in cash

$200 for utilities and $1,200 for wages.

Instruction:
Show the effects of these transactions on the
accounting equation.

From the desk of

Muhammad Sajjada Shamim Ahmed
October 23, 2007.