Show the Effect of Each Transaction on the Three Basic $\$ 16,500$

question 32

Essay

Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or decrease under the proper element heading.Compute the resulting accounting equation.
​
a. Owner invested $\$ 16,500$ cash in the business.
b. Paid premium for two-year insur ance policy, $\$ 1,500$ .
c. Purchased a van valued at $\$ 35,000$ with $\$ 5,000$ down payment; the bal ance to be paid over three years.
d. Paid the rent for the month, $\$ 900$ .
e. Purchased $\$ 470$ of supplies for cash.
f. Cash sales for the month, $\$ 8,750$ .
g. Billed credit customers $\$ 14,200$ for monthly services.
h. Paid monthly utility bill, $\$ 210$ .
Owner withdrew $\$ 2,200$ for personal use.
Received payments of $\$ 3,300$ from credit customers. ​
​

---

Definitions:

Mammary Glands

Specialized organs in mammals that produce milk to feed young offspring, predominant in female mammals.

Modified Sweat Glands

Specialized sweat glands such as mammary glands which serve additional functions beyond thermoregulation, including the secretion of milk.

Sebaceous Glands

Small oil-producing glands present in the skin of mammals, secreting sebum to lubricate skin and hair.

Testes

The male reproductive glands that produce sperm and testosterone.