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Chapter 2 HW Calculator Effect of Transactions on Accounting Equation , the following transactions ay Pembroke started a business. During the first month (April 20-) a. Invested cash in business, $18,000 b. Bought office supplies for $4,600: $2,000 in cash and $2,600 on account. c. Paid one-year insurance premium, $1,200o. d. Earned revenues totaling $3,300: $1,300 in cash and $2,000 on account occurred e. Paid cash on account to the companythat supplied the office supplies in transaction (b), $2,300. f. Paid office rent for the month, $750 g. Withdrew cash for personal use, $100. Required show the effect of each transaction on the individual acounts of the expanded accounting equation: Assets- Labilities+ Owners Equity the s sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank or enter : Liabilities + Owners Equity (Amts. Owed) (Owners Investment) J. office Receivable Supplies Insurance Prepaid Accounts Payable Cash+ Capital Drawing 18,000 26,000


Bal 2,000 4,600 1,200 300 Demonstrate that the accounting equation has remained in balance. Cash Accounts receivable 2,000 4,600 1,200 Office supplies Prepaid insurance Total Assets Accounts payable 300 Jay Pembroke, capital Jay Pembroke, drawing Service fees 3,300 Rent expense Total Liabilities and Owners Equity


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