Ill APPLICATION PROBLEM, P· 19

Determining how transactions change an accounting equation

Owner's
Assets = Liabilities + Equity
Trans.
No. Prepaid Accts. Pa/..- Accts. Pj.- Calvin Parrish,
Cash + Supplies + Insurance = Five Star upply + Riverlan Co. + Capital
Beg. Bal. 0 0 0 0 0 0
1. +3,000 +3,000
New Bal. 3,000 0 0 0 0 3,000
2. -1,600 +1,600
New Bal. 0 1,600 0 0
1,400 3,000
3. 700 700
New Bal. 1,400 700 700 0 3,000
1,600
4. 300 -700 300
New Bal. -700 1,000 1,600 0 300 3,000
5.
New Bal. 700 1,000 300 3,000
1,600 0
6. -200 -200
New Bal. 500 1,000 100 3,000
1,600 0
7. -100 100
New Bal. 400 1,100 1,600 3,000
0 100
8.
1,500 1,500
New Bal. 1,900 1,100 1,600 0 100 4,500
0

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