Effects of transactions on elements of the accounting equation. Some of the transactions carried out by Tsang Company during the first month of the company's operations are listed below. You are to determine the dollar effect of each transaction on the total assets, the total liabilities, and the owners' equity of Tsang Company. Use the symbols (+) for increase, (?) (-) for decrease, and (NC) for no change. An answer is provided for the first transaction to serve as an example.
\[\begin{array} { | l | c | c | c | }
\hline \text { Transaction } & \begin{array} { c }
\text { Total } \
\text { Assets }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Liabilities }
\end{array} & \begin{array} { c }
\text { Owners' } \
\text { Equity }
\end{array} \
\hline \begin{array} { l }
\text { A. Issued capital stock to Don Tsang in } \
\text { exchange for his investment of } \$ 200,000 \text { in } \
\text { the business. }
\end{array} & + \$ 200,000 & \mathrm { NC } & + 200,000 \
\hline \begin{array} { l }
\text { B. Purchased a computer for the business for } \
\mathbf { \$ 5 , 5 0 0 } \text { cash. }
\end{array} & & & \
\hline \text { C. Borrowed } \$ 20,000 \text { from the bank. } & & & \
\hline \begin{array} { l }
\text { D. Purchased office furnishings at a total } \
\text { price of } \$ 4,200 , \text { terms } \$ 600 \text { cash and balance } \
\text { payable in two installments. }
\end{array} & & & \
\hline \begin{array} { l }
\text { E. Paid } \$ 1,800 \text { of the balance due on the } \
\text { office furnishings. }
\end{array} & & & \
\hline \begin{array} { l }
\text { F. Sold an extra monitor that had cost } \$ 250 \
\text { for } \$ 300 \text { on credit. }
\end{array} & & & \
\hline \begin{array} { l }
\text { G. Collected } \$ 150 \text { of accounts receivable } \
\text { from purchaser of the monitor. }
\end{array} & & & \
\hline \begin{array} { l }
\text { H. Bought a small truck to be used in the } \
\text { business for } \$ 29,000 \text {; paid cash in full. }
\end{array} & & & \
\hline
\end{array}\]

Question

Effects of transactions on elements of the accounting equation. Some of the transactions carried out by Tsang Company during the first month of the company's operations are listed below. You are to determine the dollar effect of each transaction on the total assets, the total liabilities, and the owners' equity of Tsang Company. Use the symbols (+) for increase, (?) (-) for decrease, and (NC) for no change. An answer is provided for the first transaction to serve as an example.
 \[\begin{array} { | l | c | c | c | } 
\hline \text { Transaction } & \begin{array} { c } 
\text { Total } \
\text { Assets }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Liabilities }
\end{array} & \begin{array} { c } 
\text { Owners' } \
\text { Equity }
\end{array} \
\hline \begin{array} { l } 
\text { A. Issued capital stock to Don Tsang in } \
\text { exchange for his investment of } \$ 200,000 \text { in } \
\text { the business. }
\end{array} & + \$ 200,000 & \mathrm { NC } & + 200,000 \
\hline \begin{array} { l } 
\text { B. Purchased a computer for the business for } \
\mathbf { \$ 5 , 5 0 0 } \text { cash. }
\end{array} & & & \
\hline \text { C. Borrowed } \$ 20,000 \text { from the bank. } & & & \
\hline \begin{array} { l } 
\text { D. Purchased office furnishings at a total } \
\text { price of } \$ 4,200 , \text { terms } \$ 600 \text { cash and balance } \
\text { payable in two installments. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { E. Paid } \$ 1,800 \text { of the balance due on the } \
\text { office furnishings. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { F. Sold an extra monitor that had cost } \$ 250 \
\text { for } \$ 300 \text { on credit. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { G. Collected } \$ 150 \text { of accounts receivable } \
\text { from purchaser of the monitor. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { H. Bought a small truck to be used in the } \
\text { business for } \$ 29,000 \text {; paid cash in full. }
\end{array} & & & \
\hline
\end{array}\]

Quizplus · Accepted Answer

The Answer of Effects of transactions on elements of the accounting equation. Some of the transactions carried out by Tsang Company during the first month of the company's operations are listed below. You are to determine the dollar effect of each transaction on the total assets, the total liabilities, and the owners' equity of Tsang Company. Use the symbols (+) for increase, (?) (-) for decrease, and (NC) for no change. An answer is provided for the first transaction to serve as an example.
 \[\begin{array} { | l | c | c | c | } 
\hline \text { Transaction } & \begin{array} { c } 
\text { Total } \
\text { Assets }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Liabilities }
\end{array} & \begin{array} { c } 
\text { Owners' } \
\text { Equity }
\end{array} \
\hline \begin{array} { l } 
\text { A. Issued capital stock to Don Tsang in } \
\text { exchange for his investment of } \$ 200,000 \text { in } \
\text { the business. }
\end{array} & + \$ 200,000 & \mathrm { NC } & + 200,000 \
\hline \begin{array} { l } 
\text { B. Purchased a computer for the business for } \
\mathbf { \$ 5 , 5 0 0 } \text { cash. }
\end{array} & & & \
\hline \text { C. Borrowed } \$ 20,000 \text { from the bank. } & & & \
\hline \begin{array} { l } 
\text { D. Purchased office furnishings at a total } \
\text { price of } \$ 4,200 , \text { terms } \$ 600 \text { cash and balance } \
\text { payable in two installments. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { E. Paid } \$ 1,800 \text { of the balance due on the } \
\text { office furnishings. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { F. Sold an extra monitor that had cost } \$ 250 \
\text { for } \$ 300 \text { on credit. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { G. Collected } \$ 150 \text { of accounts receivable } \
\text { from purchaser of the monitor. }
\end{array} & & & \
\hline \begin{array} { l } 
\text { H. Bought a small truck to be used in the } \
\text { business for } \$ 29,000 \text {; paid cash in full. }
\end{array} & & & \
\hline
\end{array}\]

Effects of Transactions on Elements of the Accounting Equation