Question

In: Accounting

1.ABC company purchase $500 of inventory with cash. how does the equaiton change? 2. Abc company...

1.ABC company purchase $500 of inventory with cash. how does the equaiton change?

2. Abc company purchase $500 of supplies on credit? how does the equation change?

3. you invest $50,000 cash into ABC company. how does the equation change?

Solutions

Expert Solution

S.no. Accounting Equation
Assets = Liabilities + Stockholders' Equity
Cash + Inventory + Supplies = Accounts Payable + Common Stock
+ + = +
1               (500) +                 500.00 +                       -   =                             -   +                               -  
2 + +                   500 =                          500 +
3           50,000 + + = +                      50,000

ekkarill92 answered 1 year ago
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