Problem 3-9 Determining the Effects of Transactions on the Accounting Equation

 
Juanita Ortega is the owner of a professional guide service called Outback Guide Service.
 
       
  Date   Transactions            
Jan    3   1. Ms. Ortega, the owner, opened a checking account for the business by depositing
      $60,000 of her personal funds.
 
6   2. Paid by check the monthly rent of $3,000.
8   3. Bought hiking equipment for the business by writing a check for $3,000.
9   4. Purchased $24,000 of rafting equipment by writing a check.
11   5. Purchased office equipment on account for $4,000.
15   6. Received payment for guide services, $2,500.
18   7. Ms. Ortega contributed a desk valued at $450 to the business.
21   8. Withdrew $3,000 cash from the business for personal use.
26   9. Wrote a check to a creditor as partial payment on account, $1,500.
30  10. Took a group on a tour and agreed to accept payment later, $1,200.

1. For each of the above transactions:

 • Identify the accounts affected.
 • Write the amount of the increase or decrease under each account
affected. Enclose in parentheses amounts that decrease account
balances.
 • Determine the new balance for each account.
Owner
Liabiliti
’s
Assets es
Equity
Juanit
Account a
Cash Hiking Rafting Office Accoun
Transacti s Orteg
in Equipme Equipme Equipme = ts +
on Receiva a,
Bank nt nt nt Payable
ble Capit
al
$60,0 $60,0
1.
00 00
60,00 60,00
Balance = +
0 0