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Sagot :
Answer:
Assets = liabilities + Paid in capital + retainted earnings
1: 300,000 300,000
2. 30,000 30,000 0 0
3. 90,000 90,000 0 0
4. 50,000 0 0 50,000
5. -5,000 0 0 -5,000
6. 0 0 0 0
7. -70,000 0 0 -70,000
8. 0 0 0 0
9. -1000 0 0 -1000
Explanation:
2: 40,000 - 10,000 = 30,000
10,000 out of 40,000 was paid so the owed amount is 30000, which is a liability and you earn an asset by paying. So asset and liability
3. Three is straight forward.
4. 120,000 - 70,000 = 50,000
revenue is added to stockholders equity which includes retained earnings, but is also labeled an asset.
5. It's -5000 because that is amount we take out of cash to pay rent.
6. It's 0 because the insurance plan doesn't start until April, these transactions however are in march.
7. It's -70,000 because that is the cash going out
8. It's 0 because that account is paid off by the customer
9. It's negative -1000 because it's an expense on depreciation.
The analysis and effect of each transaction on the accounting equation of Wainwright Corporation are as follows:
Transaction Analysis:
1. Cash $300,000 Common Stock $300,000
2. Equipment $40,000 Cash $10,000 Notes Payable $30,000
3. Inventory $90,000 Accounts Payable $90,000
4. Accounts Receivable $120,000 Sales Revenue $120,000
Cost of Goods Sold $70,000 Inventory $70,000
5. Rent Expense $5,000 Cash $5,000
6. Prepaid Insurance $6,000 Cash $6,000
7. Accounts Payable $70,000 Cash $70,000
8. Cash $55,000 Accounts Receivable $55,000
9. Depreciation Expense $1,000 Accumulated Depreciation $1,000
Effect of Each Transaction on the Accounting Equation:
Transaction Accounting Equation
Assets = Liabilities + Stockholders Equity
1. $300,000 = $0 $300,000
2. $40,000 -$10,000 = $30,000 + $0
3. $90,000 = $90,000 + $0
4. $120,000 = $0 + $120,000
4. -$70,000 = $0 + -$70,000
5. -$5,000 = $0 + -$5,000
6. $6,000 - $6,000 = $0 + $0
7. -$70,000 = -$70,000 + $0
8. $55,000 -$55,000 = $0 + $0
9. -$1,000 = $0 + -$1,000
$394,000 = $50,000 + $344,000
Thus, the accounting equation represents the equality of assets with liabilities and equity.
Learn more about the accounting equation at https://brainly.com/question/23920579
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