Assuming the role of an accountant, your new client Suzie Maye needs help in setting up basic accounting practices for her business. You begin by showing her how to set up a transaction analysis based on the accounting equation of Assets = Liabilities + Owner’s Assets. You show Suzie how to enter the various assets, liabilities and owner’s assets into the transaction analysis template demonstrating the balance based on the equation. This will help Suzie understand that through this process every financial transaction that occurs in her business must be reconciled on each side of the equation.
Please record the following transactions using transaction analysis. Please use this template to complete this assignment.
Owner, Suzie Maye, invested $7,000 in her business, Matrix Consulting.
Company paid monthly rent, $900.
Company bought supplies on account, $600.
Company paid monthly advertising, $125.
Company performed services, $4,000.
Owner, Suzie Maye, withdrew $1,000 for personal use.
Company performed services on account for $5,400.
Company paid monthly salaries, $2,500.
Company made a payment on account, $600.
Company received $4,000 from a customer on account.
Company borrowed $5,000 from local bank.
Company bought equipment on account for $4,200.
Company paid monthly util
Expert Solution Preview
As a medical professor, my expertise is not in accounting. However, I can provide some guidance on how to approach this assignment based on my understanding of basic accounting principles.
The assignment requires the use of the provided transaction analysis template to record various transactions that occur in Suzie Maye’s business. The template is based on the accounting equation, which states that Assets = Liabilities + Owner’s Equity. This equation must always balance, meaning that the total value of assets must equal the total value of liabilities and owner’s equity.
To complete the assignment, follow these steps:
1. Enter the date of each transaction in the “Date” column of the template.
2. Identify the account(s) affected by each transaction and enter the amount(s) in the appropriate columns (“Assets”, “Liabilities”, or “Owner’s Equity”).
3. For transactions involving multiple accounts, enter the amounts in the appropriate columns under each account.
4. Calculate the total value of assets, liabilities, and owner’s equity for each transaction and enter these values in the “Total Assets”, “Total Liabilities”, and “Total Owner’s Equity” columns.
5. Verify that the accounting equation balances for each transaction by verifying that the total value of assets equals the total value of liabilities and owner’s equity.
Repeat the above steps for each transaction listed in the assignment. Once all transactions have been recorded and analyzed, the final balance should equal zero for all three categories (Assets, Liabilities, and Owner’s Equity), indicating that the accounting equation has been successfully balanced.