Chapter 1 Pre-Test Question 4

Indicate the effects of the following business transactions on the accounting equation of Vivian's Online Video store. Use the following accounts: Cash, Accounts Receivable, Supplies, Office Furniture, Accounts Payable, Common Stock, Dividends, Rental Revenue, and Rent Expense. Transaction (a) is answered as a guide. LOADING... (Click the icon to view the transactions.) Question content area bottom Part 1 a.Received cash of $10,000 from issuance of common stock.(Transaction (a) is answered as a guide.) a.Increase asset(Cash);Increase equity(Common Stock) Part 2 b.Earned video rental revenue on account, $2,800. b.Increase asset(Accounts Receivable);Increase equity(Rental Revenue) Part 3 c.Purchased office furniture on account, $300. c.Increase asset(Office Furniture);Increase liability(Accounts Payable) Part 4 d.Received cash on account, $400. d.Increase asset(Cash);Decrease asset(Accounts Receivable) Part 5 e.Paid cash on account, $100. e.Decrease asset(Cash);Decrease liability(Accounts Payable) Part 6 f.Rented videos and received cash of $200. f.Increase asset(Cash);Increase equity(Rental Revenue) Part 7 g.Paid monthly office rent of $1,000. g.Decrease asset(Cash);Decrease equity(Rent Expense) Part 8 h.Paid $100 cash to purchase office supplies. h.Decrease asset(Cash);Increase asset (Supplies)