Selected Transactions for Mac's Garage Are Shown Below

question 124

Essay

Selected transactions for Mac's Garage are shown below. State the effect in dollars on the accounting equation of each transaction.
a)George McGuire invests $4,000 cash into a business known as Mac's Garage.
b)George purchases supplies on account for $300.
c)George purchases a new welder for $1,500 cash.
d)George receives the garage's telephone bill amounting to $100 to be paid next month.
e)George withdraws $200 cash for personal use.
f)Garage revenue for the current period amounts to $2,500. (All revenue transactions involved cash.) $\begin{array} { | l | l | l | l | } \hline \text { Item } & \text { Assets } & \text { Liabilities } & \begin{array} { c } \text { Owner's } \\\text { Equity }\end{array} \\\hline \text { a) } & & & \\\hline \text { b) } & & & \\\hline \text { c) } & & & \\\hline \text { d) } & & & \\\hline \text { e) } & & & \\\hline \text { f) } & & & \\\hline \text { Totals } & & & \\\hline\end{array}$

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Definitions:

New Cereal Brand

A brand introduced in the market that offers a new variety of cereal products.

Masked Branding

A marketing strategy where the brand's direct connection to the product is minimized or hidden to appeal to a different market segment.

Similar Way

A manner or approach that bears resemblance or adherence to another process or method.

Competitor's Brand

The brand or product that competes directly with another company's offerings in the market.