Homework #1 - Ashley Day Professor Ilk August 30, 2008...

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Ashley Day Professor Ilk August 30, 2008 Homework #1 Exercises 4) a) Corporation b) Sole proprietorship c) Corporation d) Partnership e) Sole Proprietorship f) Sole Proprietorship g) Partnership 5) 1) e. 2) g. 3) a. 4) c. 5) d. 6) b. 7) f. 9) a) Transaction 1 is the investment by the owner. The investment falls under Assets and Equity in the accounting equation. b) Transaction 2 is the owner purchasing office supplies on cash and credit which falls under Accounts Payable and that is considered a form of liabilities. When both sides are added up they equal the same amount.
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c) Transaction 3 displays that the owner of the business purchased office furniture which falls under as an asset in the accounting equation. Even as a new purchase occurs both sides of the accounting equation are still equal to each other. d) Transaction 4 shows that the business owner had a customer pay them for their services and facilities on credit. It does not matter whether the payment made by the customer was based on credit or paid in a series of payments; the full amount is to be displayed in the accounting equation. e) Transaction 5 displays that the business had provided there services for a cash payment. As a cash payment it appears as a Revenue under Equity in the accounting equation.
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This note was uploaded on 11/15/2009 for the course BUAD 47548 taught by Professor Ilk during the Spring '08 term at Mary Washington.

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Homework #1 - Ashley Day Professor Ilk August 30, 2008...

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