Analyze Each of the Following Transactions in Terms of Their

question 142

Essay

Analyze each of the following transactions in terms of their effects on the accounting equation of Hawkins Delivery Service.Enter the correct amounts in the columns of the spreadsheet.
a)The owner,James Hawkins contributes $75,000 to form the business.
b)The business purchases $750 of office supplies on account.
c)The business pays cash to purchase a delivery van for $25,000.
d)Services are performed for clients and $5,000 cash is received.
e)Cash is paid for office rent expense,$800 and utilities expense,$400.
f)The owner withdrew $1,000 from the company.

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Definitions:

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, reflecting the total resources at its disposal.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, indicating the tangible assets used in operations.

Receivables Turnover

A ratio that measures a company's efficiency in collecting its sales on credit over a period of time.