Transactions Made by Benj & Co

question 145

Essay

Transactions made by Benj & Co., an accounting firm, for the month of May are shown below. Prepare a tabular analysis, which shows the effects of these transactions on the expanded accounting equation, with owner's equity columns for Capital, Drawings, Revenues, and Expenses
1. The owner invested $20,000 cash in the business.
2. The company purchased $8,000 of office equipment on credit.
3. The company received $9,000 cash in exchange for services performed.
4. The company paid $1,350 for this month's rent.
5. The owner withdrew $2,000 cash for personal use.

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Definitions:

Economic Factors

Elements that influence the functioning of an economy, including inflation rates, employment levels, GDP growth, and others.

Work Environment

The physical and psychological conditions under which employees work, including factors like office space, culture, and management style.

Autocratic Leader

A leadership approach where one person makes all the decisions without significant contributions from other members of the group.

Financial Crises

Periods of significant financial instability and distress in an economy, characterized by rapid devaluation of assets, bank failures, and loss of investor confidence.