Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 10E
Analysis using the
Zen began a new consulting firm on January 5. Following is a financial summary, including balances, for each of the company’s first five transactions (using the accounting equation form).
Identify the explanation from a through j below that best describes each transaction 1 through 5 above and enter it in the blank space in front of each numbered transaction.
- a. The company purchased office furniture for $8,000 cash.
- b. The company received $40,000 cash from a bank loan.
- c. The owner invested $1,000 cash in the business in exchange for its common stock.
- d. The owner invested $40,000 cash in the business in exchange for its common stock.
- e. The company purchased office supplies for $3,000 by paying $2,000 cash and putting $1,000 on credit.
- f. The company billed a customer $6,000 for services provided.
- g. The company purchased office furniture worth $8,000 on credit.
- h. The company provided services for $1,000 cash.
- i. The company sold office supplies for $3,000 and received $2,000 cash and $1,000 on credit
- j. j. The company provided services for $6,000 cash.
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Chapter 1 Solutions
Principles of Financial Accounting.
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