Show the Effects of Each Transaction on the Accounting Equation $\$ 20,000$

question 21

Essay

Show the effects of each transaction on the accounting equation by indicating under the proper heading the dollar amount of increase or decrease for each transaction listed below.Compute the resulting accounting equation.
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a. Owner deposited $\$ 20,000$ in his new business checking account.
b. Supplies were purchased for $\$ 300$ on account.
c. Paid a $\$ 1,200$ premium for six months of liability insurance.
d. Purchased supplies for $\$ 200$ cash.
e. Purchased equipment for $\$ 4,000$ by paying $\$ 1,000$ ; the rest to be paid in six months.
f. Paid the $\$ 300$ bill outstanding (from transaction $b$ ).
g. Owner withdrew $\$ 700$ from the business for personal use.

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Definitions:

Auditory Communication

refers to the exchange of information through verbal language and sounds that can be heard.

Linguistic Relativity Hypothesis

The concept that the structure of a language influences its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Cognitive Linguistic Hypothesis

A theory suggesting that language influences or shapes the speaker's worldview and cognitive processes.

Intonation

The variation of pitch while speaking, which can affect the meaning of words and sentences.