9/8/2015

4.

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Award: 4 out of 4.00 points

Problem 2.1A Analyzing the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3
OnJuly1,GuyFernandezestablishedFernandezHomeAppraisalServices,afirmthatprovidesexpert
residentialappraisalsandrepresentsclientsinhomeappraisalhearings.

TRANSACTIONS
1.Theownerinvested$97,000incashtobeginthebusiness.
2.Paid$19,750incashforthepurchaseofequipment.
3.Purchasedadditionalequipmentfor$14,400oncredit.
4.Paid$11,800incashtocreditors.
5.Theownermadeanadditionalinvestmentof$30,000incash.
6.Performedservicesfor$8,200incash.
7.Performedservicesfor$6,300onaccount.
8.Paid$4,000forrentexpense.
9.Received$3,500incashfromcreditclients.
10.Paid$6,460incashforofficesupplies.
11.Theownerwithdrew$9,000incashforpersonalexpenses.

Recordinequationformthechangesthatoccurinassets,liabilities,andownersequityfortheabove
transactions.(Enterdecreasestoaccountbalanceswithaminussign.)

Assets
Transactions
1.

Cash
$

2.

Accounts
Receivable

Supplies

Equipment

Liabilities

Accounts
Payable

97,000

(19,750)

19,750

14,400

14,400

(11,800)

3.

Owner's
Equity
Owner's
Capital
$
97,000

4.

(11,800)

5.

30,000

30,000

6.

8,200

8,200

6,300
(4,000)

7.

6,300

8.

(4,000)

9.

3,500

10.

(6,460)

11.

(9,000)

Totals

87,690

(3,500)

2,800

6,460
$

6,460

34,150

(9,000)

+
$

2,600

128,500

Analyze:
Whatistheendingbalanceofcashafteralltransactionshavebeenrecorded?

$
87,690
EndingBalance

References
Worksheet

LearningObjective:0201
Recordinequationformthe
financialeffectsofabusiness
transaction.

Problem2.1AAnalyzing
theeffectsof
transactionsonthe
accountingequation.
LO21,22,23

LearningObjective:0202
Define,identify,andunderstand
therelationshipbetweenasset,
liability,andownersequity
accounts.

LearningObjective:0203Analyzetheeffectsofbusiness
transactionsonafirmsassets,liabilities,andownersequityand
recordtheseeffectsinaccountingequationform.

Problem 2.1A Analyzing the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3
OnJuly1,GuyFernandezestablishedFernandezHomeAppraisalServices,afirmthatprovidesexpert
residentialappraisalsandrepresentsclientsinhomeappraisalhearings.

TRANSACTIONS
1.Theownerinvested$97,000incashtobeginthebusiness.
2.Paid$19,750incashforthepurchaseofequipment.
3.Purchasedadditionalequipmentfor$14,400oncredit.

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9/8/2015

AssignmentPrintView
4.Paid$11,800incashtocreditors.
5.Theownermadeanadditionalinvestmentof$30,000incash.
6.Performedservicesfor$8,200incash.
7.Performedservicesfor$6,300onaccount.
8.Paid$4,000forrentexpense.
9.Received$3,500incashfromcreditclients.
10.Paid$6,460incashforofficesupplies.
11.Theownerwithdrew$9,000incashforpersonalexpenses.

Recordinequationformthechangesthatoccurinassets,liabilities,andownersequityfortheabove
transactions.(Enterdecreasestoaccountbalanceswithaminussign.)

Assets
Transactions
1.

Cash
$

2.

Accounts
Receivable

Supplies

Equipment

Liabilities

Accounts
Payable

97,000

(19,750)

19,750

14,400

3.

Owner's
Equity
Owner's
Capital
$

97,000

14,400

4.

(11,800)

(11,800)

5.

30,000

30,000

6.

8,200

8,200

6,300

(4,000)

7.

8.

(4,000)

6,300

9.

3,500

10.

(6,460)

11.

(9,000)

87,690

Totals

(3,500)

2,800

6,460
$

6,460

34,150

+
$

2,600

(9,000)
$

128,500

Analyze:
Whatistheendingbalanceofcashafteralltransactionshavebeenrecorded?

EndingBalance
$
87,690

Explanation:
Nofurtherexplanationdetailsareavailableforthisproblem.

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