Chapter 3 Transactions

Question 0

The owner took a desk and chair worth $1,000 from home and brought it to the business.

Answer 0

Office Furniture - Asst - Increases

Jane Smith, Capital - OE - Increases

Question 1

Jane Smith invested $50,000 in her business, Jane’s Juggernauts.

Answer 1

Cash - Asset - increases

Jane Smith, Capital - O/E - increases

Question 2

Jane’s Juggernauts bought a $2000 computer on account.

Answer 2

Computer Equipment - A increases

A/P - liability - increases

Question 3

Juggernauts bought a used van on account, $25,000

Answer 3

Delivery Van - asset - increases

A/P - L - increases

Question 4

Juggernauts provided a service and agreed to be paid later.

Answer 4

A/R - asset - increaes

Services - Revenue (O/E increases)

Question 5

Juggernaut made a partial payment for the van bought on account.

Answer 5

Cash - asset - decreases

A/P - liability - decreases

Question 6

Received cash for the services previously provided on account.

Answer 6

Cash - asset - increases

A/R - asset - decreases

Question 7

Jane took money out of the business for personal use.

Answer 7

Cash - asset - decreases

Jane Smith, withdrawals - withdrawals increases (O/E decreases)

Question 8

Juggernauts paid rent for the month

Answer 8

Cash - asset - decreases

Rent Expense - expense increases (O/E decreases)