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Practice · A1

What did that transaction do?

Pick each transaction's effect on the accounting equation — no debits or credits, just which accounts moved and which way.

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  1. 1.Chas Taylor invests $30,000 cash in exchange for common stock.

  2. 2.Buys supplies for $2,500 cash.

  3. 3.Buys equipment for $26,000 cash.

  4. 4.Buys $7,100 of supplies on credit.

  5. 5.Provides consulting services for $4,200 cash.

  6. 6.Pays $1,000 rent and $700 salary.

  7. 7.Provides $1,600 of consulting and $300 of rental on credit.

  8. 8.Collects $1,900 from the client in the transaction above.

  9. 9.Pays $900 of the account payable.

  10. 10.Pays a $200 cash dividend.