Question

Albert started her business on July 1, 2020. The following transactions occurred during the month of July.

Identify the effects of the following transactions on the accounting equation:

July	Transactions
1	Albert started her agriculture business with $150,000 cash.
3	Paid $1,000 in the month for rent of office space.
4	Purchased $1,500 chemicals on credit terms from BioKaput Company.
5	Paid $700 for publicity in the Wakanda Business newspaper.
8	Interviewed candidates who applied for a marketing executive position with a monthly salary of $1,800.
10	Customers paid $3,500 cash for goods purchased.
11	The office space was redecorated with the payment of $4,000 cash.
14	Chemicals worth $25,000 were sold on account.
16	Paid $1,800 in cash for insurance services.
18	Employees’ salaries of $8,000 were paid for by cash.
21	Paid the supplies purchased on account on 4th July.
24	Received a cash payment of $20,000 for chemicals sold on account on 14th July.
27	The sum of $600,000 was borrowed from a local bank on a long-term basis.
28	Purchased office equipment for $30,000 on the account.
30	Utilities of $1,500 were settled.

Answer 1