Tracy Migre, a certified public accounting, has completed the following transactions. Ms.Migres assests , liabilites, and owner equity account titles and balances are shown in the table below. use the table on the page to show the effect of each transaction.
Transactions:
1)Owner invested additional cash in the buissness,$ 5,000.
2)Paid telephone bill,$600 .
3)Wrote a check to a creditor as partial payment on account,$500.
4)bought supplies on account, $150.
5)Received a check for accounting services, $300.
6)Owner invested office equipment in the bussines,$2,500.
7)Completed accounting services and agreed to accept payment later,$900.
8)Withdrew cash from the buissness for personal use,$2,000.
9)Received a check as partial payment on account $450.
BIG TIP:each transaction has two entries.Dont forget beginning balances.
theres a chart but i wouldnt post here the chart is 18 boxes and 6 colums the first box is empty than the second box your suppose to right the new balance i really need help please help me out.
To show the effect of each transaction on Tracy Migre's assets, liabilities, and owner's equity, we can use the following table:
|Transaction |Assets |Liabilities |Owner's Equity |
|------------- |---------------------|------------- |-----------------|
|Beginning Balances | (Balances from the table) | | |
|1) Owner invested additional cash in the business, $5,000 | +$5,000 (Cash) | | +$5,000 (Owner's Equity) |
|2) Paid telephone bill, $600 | -$600 (Cash) | | |
|3) Wrote a check to a creditor as partial payment on account, $500 | -$500 (Cash) | -$500 (Accounts Payable) | |
|4) Bought supplies on account, $150 | | +$150 (Accounts Payable) | |
|5) Received a check for accounting services, $300 | +$300 (Cash) | | |
|6) Owner invested office equipment in the business, $2,500 | +$2,500 (Office Equipment) | | +$2,500 (Owner's Equity) |
|7) Completed accounting services and agreed to accept payment later, $900 | +$900 (Accounts Receivable) | | |
|8) Withdrew cash from the business for personal use, $2,000 | -$2,000 (Cash) | | -$2,000 (Owner's Equity) |
|9) Received a check as partial payment on account, $450 | +$450 (Cash) | | |
To fill in the second box (new balances) in the chart, you need to add or subtract the amounts for each account based on the effect of each transaction. Remember to update the balances in each account accordingly after each transaction.
For example, for the first transaction "Owner invested additional cash in the business, $5,000," you would add $5,000 to the Cash account and $5,000 to the Owner's Equity account.
Continue this process for each transaction, updating the balances for each account accordingly.