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:

Farmer

An individual engaged in agriculture, raising living organisms for food or raw materials, typically leading the operation of farms or animal husbandry.

Price

The amount of money required to purchase a good or service.

Average Price

The sum of all the prices of all the units sold divided by the number of units.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.