Answer Happy

You are the bookkeeper for a small company that provides cricket training. As the bookkeeper, you have been given a list of 10 transactions that occurred. The owners have asked you to provide them with Financial Statements. Now, we need to determine the effect of the 10 transactions and create Financial Statements that accurately represent the financial position of the company. Part 1: In the table below, analyze the impact of the transactions on the Accounting Equation. Instructions: Consider the effect of each of the below transactions on the Accounting Equation. Under the appropriate category, list the amount of increase or decrease of each transactions and to which account it will be recorded. The first transaction is shown for you as an example. Liabilities 1 Assets Cash increase $25,000 + Owner Equity Common Stock increase $25,000 Sell shares of common stock for $25,000 Borrow $10,000 from bank (bank loan) 2 3 Purchase equipment for $24,000 cash. 4 Pay one year of rent in advance, $6,000 ($500 per month). Purchase supplies on account, $2,300. 5 6 7 Provide cricket training to customers for cash, $4,300.^^ Provide cricket training to customers on account, $2,000. Receive cash in advance for training sessions to be given in the future, $600.^^ Pay salaries to employees, $2,800. 8 9 10 Pay cash dividends of $200 to shareholders.