Presentation on theme: "Sample Problem Chapter 2 Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring."— Presentation transcript:
Sample Problem Chapter 2
Analyzing the effects of transactions on the accounting equation. On September 1, Mireya Cortez opened Self Images Tutoring Service. Instructions Analyze 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.) Transactions 1.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.