00:01
Hello, let's evaluate the effect of each transaction on assets, liabilities and equity.
00:09
For first, i .e.
00:11
Purchase equipment for $50 ,000 in cash, there will be increase in assets by $50 ,000.
00:31
There will be no change in the liability and there will be no change in the equity as well.
00:36
So, there will be only increase in assets by $50 ,000.
00:41
So second, borrow of $67 ,000 from a bank, so it will increase cash i .e.
00:53
It will affect assets by $67 ,000 as we are borrowing the money from a bank and it will also increase the liabilities by $67 ,000 and there will be no change in the equity.
01:18
For third part, i .e.
01:20
Issue of $80 ,000 in stock, there will be no change in the assets and liabilities but there will be increase in equity by $80 ,000.
01:41
For fourth part, buy $16 ,000 worth of manufacturing supplies on credit, so it will increase assets by $16 ,000 as you are purchasing a manufacturing supplies and it will increase account payable i .e.
02:15
It will increase the liabilities side by $16 ,000.
02:25
Fifth part, $7 ,000 is paid which is owed to the supplier, so here the cash will decrease i .e...