Zelda began a new consulting firm on January 5. The accounting equation showed the following balances after each of the company’s first five transactions. Analyze the accounting equation for each transaction and describe each of the five transactions with their amounts.
|
Assets = Liabilities + Equity |
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|
Accounts Receiv able |
Office Sup plies |
Office Furni ture |
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|
Trans |
Accounts Payable |
Zelda, Capital |
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|
action |
Cash |
+ |
+ |
+ |
= |
+ |
+ |
Revenues |
|||||
|
a. |
$20,000 |
+ |
$ 0 |
+ |
$ 0 |
+ |
$ 0 |
= |
$ 0 |
+ |
$20,000 |
+ |
$ 0 |
|
b. |
19,000 |
+ |
0 |
+ |
1,500 |
+ |
0 |
= |
500 |
+ |
20,000 |
+ |
0 |
|
c. |
11,000 |
+ |
0 |
+ |
1,500 |
+ |
8,000 |
= |
500 |
+ |
20,000 |
+ |
0 |
|
d. |
11,000 |
+ |
3,000 |
+ |
1,500 |
+ |
8,000 |
= |
500 |
+ |
20,000 |
+ |
3,000 |
|
e. |
11,500 |
+ |
3,000 |
+ |
1,500 |
+ |
8,000 |
= |
500 |
+ |
20,000 |
+ |
3,500 |