Question

Transaction 6: Payment of Expenses

During the month, the business pays $3,000 in cash expenses: rent expense on a computer, $600; office rent, $1,100; employee salary, $1,200; and utilities, $400. The effects on the accounting equation are

	ASSETS				LIABILITIES	OWNER'S EQUITY	TYPE OF OE
CASH	ACCOUNTS RECEIVABLE	OFFICE SUPPLIES	LAND		ACCT PAYABLE	SHEENA BRIGTH
BAL
15,500	3,000	500	20,000		?	?
-600						?	RENT EXP COMPUTER
-1,100						?	RENT EXP OFFICE
-1,200						?	SALARY EXPENSE
-400						?	UTILITIES EXPENSE
BAL
12,200	3,000	500	20,000		?	?

Answer 1

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Payment of Expenses
ASSETS		LIABILITIES		OWNER’S EQUITY	Type
Cash	+	Accounts Receivable	+	Office Supplies	+	Land	=	Accounts Payable	+	Sheena Bright, Capital
15,500.00	+	3,000.00	+	500.00	+	20,000.00	=	500.00	+	38,500.00
(600.00)	+		+		+		=		+	(600.00)	RENT EXP
(1,100.00)	+		+		+		=		+	(1,100.00)	OFFICE RENT
(1,200.00)	+		+		+		=		+	(1,200.00)	SALARY EXPENSE
(400.00)	+		+		+		=		+	(400.00)	UTILITIES
12,200.00	+	3,000.00	+	500.00	+	20,000.00	=	500.00	+	35,200.00