Question

For each transaction, numbered 1 through 12 below, identify its effect for the current year on the accounting equation by selecting from a through h below. You may use each letter more than once or not at all.

Accounting Equation Effects

a. + A and + L

b. + A and + SE (Contributed Capital)

c. + A and + SE (Retained Earnings)

d. - A and - L

e. - A and - SE (Contributed Capital)

f. - A and - SE (Retained Earnings)

g. + A and - A

h. Not communicated by the formal accounting system ANSWER HERE # Transaction g 1 Purchased computer equipment for cash 2 Received cash in exchange for the issuance of a note payable 3 Purchased building and land in exchange for a mortgage note payable 4 Received cash in exchange for the issuance of common stock 5 Purchased computer supplies on account 6 Provided computer services to customers for cash 7 Paid an account payable 8 Provided computer services to customers on account 9 Used computer supplies in the regular operations of the business (acquired during a previous accounting period) 10 Recorded depreciation for the company’s computer 11 Secured a large contract with Allegheny Company to provide computer services during the forthcoming year 12 Declared and paid dividends to the owners of common stock

Answer 1

• Requirement asked

ANSWER HERE	#	Transaction
g. + A and - A	1	Purchased computer equipment for cash
a. + A and + L	2	Received cash in exchange for the issuance of a note payable
a. + A and + L	3	Purchased building and land in exchange for a mortgage note payable
b. + A and + SE (Contributed Capital)	4	Received cash in exchange for the issuance of common stock
a. + A and + L	5	Purchased computer supplies on account
c. + A and + SE (Retained Earnings)	6	Provided computer services to customers for cash
d. - A and - L	7	Paid an account payable
c. + A and + SE (Retained Earnings)	8	Provided computer services to customers on account
f. - A and - SE (Retained Earnings)	9	Used computer supplies in the regular operations of the business (acquired during a previous accounting period)
f. - A and - SE (Retained Earnings)	10	Recorded depreciation for the company’s computer
h. Not communicated by the formal accounting system	11	Secured a large contract with Allegheny Company to provide computer services during the forthcoming year
f. - A and - SE (Retained Earnings)	12	Declared and paid dividends to the owners of common stock