Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
Transaction Analysis for Year 2 in the books of Better Corp.
1. Land $5,000 Cash $5,000
2. Cash $25,000 Common stock $25,000
3. Cash $75,000 Services Revenue $75,000
4. Operating expenses $42,000 Cash $42,000
5. Cash $10,000 Bank Note Payable $10,000
6. Dividends $5,000 Cash $5,000
7. No effect
Effect of Each Transaction on the Accounting Equation:
Transaction Accounting Equation
Assets = Liabilities + Stockholders Equity
1. $5,000 -$5,000 = $0 + $0
2. $25,000 = $0 + $25,000
3. $75,000 = $0 + $75,000
4. -$42,000 = $0 + -$42,000
5. $10,000 = $10,000 + $0
6. -$5,000 = $0 + -$5,000
$63,000 = $10,000 + $53,000
Thus, the accounting equation shows that assets are equal to liabilities and equity.
Learn more about the accounting equation at brainly.com/question/23920579
Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.