Question 1:
The transactions of Net Solutions:
1. Chris, the owner, invested $50,000 cash in the company
2. The company purchased office equipment for $6,000 on account.
3. The company purchases land for $30,000 cash.
4. The company purchased office supplies for $2,000 using cash.
5. The company received $7,500 cash for creating a webpage for its customer.
6. The company makes a payment of $2,500 to the credit card company.
7. The company paid $1,000 cash for the electric bill
8. The company pays $2,000 in wages to an employee.
9. The company receives $2,500 cash for creating a database for the customer.
Required:
(Total 20 Marks)
Record the above transactions in the table below, reflecting their effect on the different
financial statements. Precede the amount with a minus sign if the transaction reduces that
section of the equation.
Transaction
#/Balance
1
Balance
2
Balance
3
Balance
4
Balance
5
Balance
6
Balance
7
Balance
8
Balance
9
Balance
Assets
Liabilities Equity
Office
Office
Cash
Equipme Land
Supplies
Accounts Owner's
Payable Equity
nt
