Chapter 1 Starting a Proprietorship: Changes That Affect the Accounting Equation • 1
Name Date Class
1-R RECYCLING PROBLEM (LO4, 5, 6)
Determining how transactions change an accounting equation
1., 2., 3., 4., 5.
Trans.
No.
Assets = Liabilities 1 Owner’s Equity
Accts. Rec.— Accts. Pay.—
Big Day Prepaid Music Courtney McGraw,
Cash 1 Planning 1 Supplies 1 Insurance = Sources Co. 1 Capital
Beg. Bal.
1. 2,500
11,000 0 200 100 1,300 1,500
11,000 (investment)
New Bal.
2. 3,500 0 200 100 1,300 2,500
New Bal.
3.
New Bal.
4.
New Bal.
5.
New Bal.
6.
2700 2700 (expense)
2,800
275 0 200 100 1,300 1,800
275 (expense)
2,725
11,500 0 200 100 1,300 1,725
11,500 (revenue)
4,225 0 200
1350 100 1,300
1350 3,225
4,225 0
1265 550 100 1,650 3,225
1265 (revenue)
