Received cash from owner as an investment. $2.000 00
2 Paid cash for insurance. $600.00
Bought supplies on account from Swan's Supply Company. S100 00
4 Bought supplies on account from York Company, $500.00
5. Paid cash on account to Swan's Supply Company, $100.00
6 Paid cash on account to York Company, $300.00.
7. Paid cash for supplies, $500.00.
8. Received cash from owner as an investment, $500.00
INSTRUCTIONS:
For each transaction, complete the following Transaction 1 is given as an examp
a. Analyze the transaction to determine which accounts in the accounting equation
affected
b. Write the amount in the appropriate columns using a plus (+) if the account increases
minus (-) if the account decreases.
c. For transactions that change owner's equity, write in parentheses
ange owner's equity write in parentheses a description of the
transaction to the right of the amount.
d. Calculate the new balance for each account in the accounting equation.
e. Before going on to the next transaction determine that the accounting equauon 3
balance.
PROBLEM
2-2 Preparing a balance sheet from information in an accounting exilation
On September 30 the Steffens Company's accounting equation indicated the following
account balances,
Assets
Trans.
No.
Cash
+
Supplies
150
+
T
Prepaid
Insurance
300
300
- Morton
Company
Steve Steins,
Cats
1,400
New Bal.
1,200
250
INSTRUCTIONS:
Using the September 30 balance in the accounting equation, prepare a balance sheet for the
Steffens Company.