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Sheryl Hansen started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.

a. Invested cash in the business, $3,100.
b. Bought equipment for cash, $500.
c. Bought equipment on account, $800.
d. Paid cash on account for equipment purchased in transaction (c), $300.
e. Withdrew cash for personal use, $700.

User Gilbeg
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Answer:

Sheryl Hansen

T- Accounts

Cash

Account Titles Debit Credit

a. Sheryl Hasen, Capital $3,100

b. Equipment $500

d. Accounts Payable 300

e. Sheryl Hasen, Drawings 700

Sheryl Hasen, Capital

Account Titles Debit Credit

a. Cash $3,100

Equipment

Account Titles Debit Credit

b. Cash $500

c. Accounts Payable 800

Accounts Payable

Account Titles Debit Credit

c. Equipment $800

d. Cash $300

Sheryl Hasen, Drawings

Account Titles Debit Credit

e. Cash $700

Step-by-step explanation:

a) Data and Analysis:

a. Cash $3,100 Sheryl Hasen, Capital $3,100

b. Equipment $500 Cash $500

c. Equipment $800 Accounts Payable $800

d. Accounts Payable $300 Cash $300

e. Sheryl Hasen, Drawings $700 Cash $700

User Almaron
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