93 L Hamilton Established His Own Business, Called Fix-It Yourself

question 5

Essay

93. L. Hamilton established his own business, called Fix-It Yourself. Using the fundamental accounting equation, record the transactions for the month provided below for the business:

a.) Owner deposited $5,800 in a bank account in the name of the business.
b.) Company bought equipment, paying cash, $1,500.
c.) L. Hamilton invested personal equipment in the business with fair market value of $3,300.
d.) Company bought supplies on account from a creditor, $750.
e.) Company paid creditor from transaction d, $250.
f.) Owner deposited $1,000 in personal checking account
1.
Record the transactions in columnar form including the following:
*write plus and minus signs,
* show the balance after each transaction to verify
*and list the account titles needed to record each transaction.
2.
Write the proof of totals at the bottom to show that one side of the equation equals the other side.
a.) Owner deposited $5,800 in a bank account in the name of the business.
b.) Company bought equipment, paying cash, $1,500.
c.) L.Hamilton invested personal equipment in the business with fair market value of $3,300.
d.) Company bought supplies on account from a creditor, $750.
e.) Company paid creditor from transaction d, $250.f.) Owner deposited $1,000 in personal checking account