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Assignment Print View 3.9

1. Juanita Ortega opened a checking account for her guide business Outback Guide Service by depositing $60,000 of her personal funds. Over the next few weeks she made various purchases and received payments. 2. She tracked 10 transactions which included buying equipment, paying rent and creditors, receiving a payment, and withdrawing cash for personal use. 3. The problem asks the reader to identify which accounts are affected by each transaction, determine if the balance increases or decreases, and calculate the new account balances. It also asks the reader to calculate the amount owed to creditors after the 10th transaction.

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Zach Jaap
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333 views

Assignment Print View 3.9

1. Juanita Ortega opened a checking account for her guide business Outback Guide Service by depositing $60,000 of her personal funds. Over the next few weeks she made various purchases and received payments. 2. She tracked 10 transactions which included buying equipment, paying rent and creditors, receiving a payment, and withdrawing cash for personal use. 3. The problem asks the reader to identify which accounts are affected by each transaction, determine if the balance increases or decreases, and calculate the new account balances. It also asks the reader to calculate the amount owed to creditors after the 10th transaction.

Uploaded by

Zach Jaap
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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3/23/2021 Assignment Print View

Score: 16/16 Points 100 %

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3/23/2021 Assignment Print View
 
1. Award: 16 out of 16.00 points
 

Problem 3-9 Determining the Effects of Transactions on the Accounting Equation

Juanita Ortega is the owner of a professional guide service called Outback Guide Service.

Date Transactions
Jan 3 1. Ms. Ortega, the owner, opened a checking account for the business by depositing
$60,000 of her personal funds.

6 2. Paid by check the monthly rent of $3,000.


8 3. Bought hiking equipment for the business by writing a check for $3,000.
9 4. Purchased $24,000 of rafting equipment by writing a check.
11 5. Purchased office equipment on account for $4,000.
15 6. Received payment for guide services, $2,500.
18 7. Ms. Ortega contributed a desk valued at $450 to the business.
21 8. Withdrew $3,000 cash from the business for personal use.
26 9. Wrote a check to a creditor as partial payment on account, $1,500.
30 10. Took a group on a tour and agreed to accept payment later, $1,200.

1. For each of the above transactions:


• Identify the accounts affected.
• Write the amount of the increase or decrease under each account affected. Enclose in parentheses
amounts that decrease account balances.
• Determine the new balance for each account.

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3/23/2021 Assignment Print View

2. Calculate the amount owed to creditors after Transaction 10.

Problem 3-9 Determining the Effects of Transactions on the Accounting Equation

Juanita Ortega is the owner of a professional guide service called Outback Guide Service.

Date Transactions
Jan 3 1. Ms. Ortega, the owner, opened a checking account for the business by depositing
$60,000 of her personal funds.

6 2. Paid by check the monthly rent of $3,000.


8 3. Bought hiking equipment for the business by writing a check for $3,000.
9 4. Purchased $24,000 of rafting equipment by writing a check.
11 5. Purchased office equipment on account for $4,000.
15 6. Received payment for guide services, $2,500.
18 7. Ms. Ortega contributed a desk valued at $450 to the business.
21 8. Withdrew $3,000 cash from the business for personal use.
26 9. Wrote a check to a creditor as partial payment on account, $1,500.
30 10. Took a group on a tour and agreed to accept payment later, $1,200.

1. For each of the above transactions:

https://ezto.mheducation.com/hm.tpx?todo=printviewSingle 3/4
3/23/2021 Assignment Print View

• Identify the accounts affected.


• Write the amount of the increase or decrease under each account affected. Enclose in parentheses
amounts that decrease account balances.
• Determine the new balance for each account.

2. Calculate the amount owed to creditors after Transaction 10.

https://ezto.mheducation.com/hm.tpx?todo=printviewSingle 4/4

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