Question

Assets Liabilities and Owner's Equity Cash $ 15,000 Accounts Payable $ 4,750 Equipment $ 6,000 Owner's Equity: Investment $ 16,250 Total Assets $ 21,000 Total Liabilities and Owner's Equity $ 21,000 a. From cash purchase equipment for $1,000 b. Pay $3,000 from cash for accounts payable c. Take $750 cash for a salary. Enter the new figures (net changes) where appropriate.

Answer 1

final balance sheet

Assets Liabilities and owner's equity

Cash 10,250 Accounts payable 1,750

Equipment 7,000 Owner's equity 15,500

total 17,250 total 17,250

Step-by-step explanation:

Initial balance sheet

Assets Liabilities and owner's equity

Cash 15,000 Accounts payable 4,750

Equipment 6,000 Owner's equity 16,250

A) then the company purchases equipment for $1,000 and pays cash

Dr Equipment 1,000

Cr Cash 1,000

B) pays $3,000 of accounts payable using cash

Dr Accounts payable 3,000

Cr Cash 3,000

C) set apart $750 for salaries

Dr Salaries expense 750

Cr Cash 750

final balance sheet

Assets Liabilities and owner's equity

Cash 10,250 Accounts payable 1,750

Equipment 7,000 Owner's equity 15,500

total 17,250 total 17,250