Question

Accounting Professionals Inc. experienced the following events in 2014, its first year of operation:1. Performed services for $20,000 cash.2. Purchased $4,000 of supplies on account.3. A physical count on December 31, 2014, found that there was $1,000 of supplies on hand.RequiredBased on this information alonea.Record the events under an accounting equation. (Enter any decreases to account balances with aminus sign.

Answer 1

Step-by-step explanation:

The accounting equation is presented below:

Particulars Assets = Liabilities = Stockholders equity

Cash Supplies Account payable Retained earnings

1. Service

Performed $20,000 $20,000

2. Supplies

Purchased $4,000 $4,000

3. Supplies

Used -$3,000 -$3,000

Total $20,000 $1,000 $4,000 $17,000