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You are required to indicate the effects of each of these transactions on the companys assets, liabilities and owners equity. Organize your answer in a tabular form, using the column headings shown below and the code letters I for Increase, D for Decrease and NE for No Effect.
Transaction # Assets = Liabilities + Owners Equity
a) b) c) d)
Borrowed money from a bank. Sold land for cash at a price equal to its cost Returned some of the office equipment previously purchased on credit but not yet paid for. Collected an accounts receivable and paid a liability from the amount collected.
Consider the following transactions of Alpha Service Organization. May 1 8 16 19 24 25 27 28 30 Started business with cash $80,000 Rendered services on account $5,125 Paid $4,200 of employee salaries Customers previously billed paid $2,500. Purchased office equipment of $650 on account. Rendered services for cash, $750 Paid $240 for the equipment purchased on May 24. Purchased land, paying $6000 down and signed a promissory note for the remaining $14,000. Paid advertising bill for the month $250
Required: a) Journalise the above transactions. (Narrations are required) b) Post the transactions to the ledger accounts. c) Prepare the trial balance (Marks will be deducted if correct formats are not followed)