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Impact of a transaction
The company used $45,000 in cash to purchase land on the west side of Hatu Lake.
List the accounts impacted by the transaction.
For each account, indicate whether the transaction increased or decreased the account.
For each account, indicate how much the transaction increased or decreased the account.
Compute the impact of the transaction on total assets, total liabilities, and total owners' equity.

2007-08-24 20:34:42 · 2 answers · asked by shavon60120 1 in Business & Finance Other - Business & Finance

2 answers

See if this helps

http://www.futureaccountant.com/accounting-process/study-notes/fundamental-accounting-equation.php

2007-08-26 06:01:17 · answer #1 · answered by krishbhavara 6 · 0 0

The company used $45,000 in cash to purchase land on the west side of Hatu Lake.
List the accounts impacted by the transaction
Dr Land (fixed asset) 45k (increased)
Cr Cash 45k (decreased)

The transaction had no effect on total assets (increased 45k, decreased 45k, net effect is 0), didn't impact liabilities or owner's equity.

2007-08-25 06:25:15 · answer #2 · answered by Sandy 7 · 0 0

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