show the effect of each of the following transactions on the basic accounting equati 4374181

Show the effect of each of the following transactions on the basic accounting equation, by pre­paring a table like the one in Exhibit 2-8. The fiscal year end of the company (which has been operating for several years) is December 31. a. Consumed $1,000 of office supplies during the year. The supplies were purchased for cash the previous year. b. Purchased $32,000 of inventory on account during the year. c. Made sales of $60,000 during the year, of which $24,000 were cash sales. d. Paid $36,000 owed to suppliers on accounts payable. (This included some amounts owed from the previous year.) e. Collected $34,000 due from customers on accounts receivable. (This included some amounts due from the previous year.) f. Paid an insurance premium of $800 on March 31 that provides coverage for the 12-month period starting April 1. The company had no insurance prior to this. g. Determined that the cost of the inventory sold during the year was $39,000. (This included some inventory purchased the previous year.) h. Paid $7,000 for operating expenses during the year. i. On December 31, the company recognized the amount of insurance expense incurred during the period. (Refer to transaction “f.”) j. Recorded $3,600 of depreciation for the year on the company’s equipment, k. Declared (but did not immediately pay) dividends of $400 each quarter, for a total of $1,600. 1. By the end of the year, $1,200 of the dividends were paid. View Solution:
Show the effect of each of the following transactions on

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