Question

On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.

TRANSACTIONS

The owner invested $97,000 in cash to begin the business.

Paid $19,750 in cash for the purchase of equipment.

Purchased additional equipment for $14,400 on credit.

Paid $11,800 in cash to creditors.

The owner made an additional investment of $30,000 in cash.

Performed services for $8,200 in cash.

Performed services for $6,300 on account.

Paid $4,000 for rent expense.

Received $3,500 in cash from credit clients.

Paid $6,460 in cash for office supplies.

The owner withdrew $9,000 in cash for personal expenses.

Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions.

Analyze:
What is the ending balance of cash after all transactions have been recorded?

Answer 1

Basic Accounting Equation is, Assets= Liabilities and Owner's Equity

Recording of Transactions in Equation form to know the changes in Assets, Liabilities and Owner's Equity:-

Wrigley Home Appraisal Services

Transaction Analysis

For the Month of July

No.					Assets			=	Liabilities	+	Owner's		Equity
	Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Accounts Payable	+	Owner's Capital	-	Owner's Drawings	+	Service Revenue	-	Expense
1.	$97,000	+		+		+		=		+	$97,000	-		+		-
2.	(19,750)	+		+		+	$19,750	=		+		-		+		-
3.		+		+		+	14,400	=	$14,400	+		-		+		-
4.	(11,800)	+		+		+		=	(11,800)	+		-		+		-
5.	30,000	+		+		+		=		+	30,000	-		+		-
6.	8,200	+		+		+		=		+		-		+	$8,200	-
7.		+	$6,300	+		+		=		+		-		+	6,300	-
8.	(4,000)	+		+		+		=		+		-		+		-	4,000
9.	3,500	+	(3,500)	+		+		=		+		-		+		-
10.	(6,460)	+		+	$6,460	+		=		+		-		+		-
11.	(9,000)	+		+		+		=		+		-	$9,000	+		-
Bal.	$87,690	+	$2,800	+	$6,460	+	$34,150	=	$2,600	+	$127,000	-	$9,000	+	$14,500	-	$4,000

The Ending Balance of Cash after all transactions have been recorded is $87,690.