Show the effects of the transactions on the accounts

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Reference no: EM132799795

Question - Graham Roofing Company, owned by R. Graham, began operations in May and completed the following transactions during that first month of operations.

May 1 R. Graham invested $90,000 cash in the company.

May 2 The company purchased $25,000 in office equipment. It paid $10,000 in cash and signed a note payable promising to pay the $15,000 over the next three years.

May 3 The company rented office space and paid $3,000 for the May rent expense.

May 7 The company paid cash a supplier expenses $2,000 for roofing materials used on the May job.

May 8 The company purchased a $2,500 copy machine equipment for office use on credit.

May 9 The company completed work for customers on credit in the amount of $16,000 as a revenue.

May 20 The company received $10,000 in payments from the customers billed on May 9.

May 28 The company paid $1,500 on the copy machine Purchased on May 8.

May 31 The company paid its employees' salaries expenses $2,400 for the second half of the month.

Required -

1) Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases.

2) Determine the final total for each account and verify that the equation is in balance.

Reference no: EM132799795

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