The Expanded Accounting Equation• ______ ASSETS = LIABILITIES + Owner’s EQUITY• Prepaid Accts. Pay./ B. Trevino,• Cash + Supplies + Insurance = Ling Music Sup. + Capital____• $0 + $0 + $0 = $0 + $0 Bal.• +10,000 +10,000__(1)• $10,000 + 0 + 0 = 0 + $10,000 Bal.• - 1,577 +1,577

___(2)• 8,423 + 1,577 + 0 = 0 + 10,000 Bal.• _- 1,200 +1,200__________________________________ (3)• 7,223 + 1,577 + 1,200 = 0 + 10,000 Bal.• _____________+2,720 +2,720____________________ (4)• 7,223 + 4,297 + 1,200 = 2,720 + 10,000 Bal.• - 1,360 - 1,360____________________(5)• $5,863 + $4,297 + $1,200 = $1,360 + $10,000 Bal.

• Transactions:• (1) Received cash from owner as an investment, $10,000• (2) Paid cash for supplies, $1,577• (3) Paid cash for insurance, $1,200• (4) Bought supplies on account from Ling Music Supplies, $2,720• (5) Paid cash on account to Ling Music Supplies, $1,360

The Expanded Accounting Equation

______ ASSETS = LIABILITIES + Owner’s EQUITY

Prepaid Accts. Pay./ B. Trevino,

Cash + Supplies + Insurance = Ling Music Sup. + Capital_

$0 + $0 + $0 = $0 + $0 Bal.

+10,000 +10,000__ (1)

$10,000 + 0 + 0 = 0 + $10,000 Bal.

- 1,577 +1,577 ____(2)

8,423 + 1,577 + 0 = 0 + 10,000 Bal.

- 1,200 +1,200________________________________ (3)

7,223 + 1,577 + 1,200 = 0 + 10,000 Bal.

____________+2,720 +2,720________________ (4)

7,223 + 4,297 + 1,200 = 2,720 + 10,000 Bal.

- 1,360 - 1,360________________ (5)

$5,863 + $4,297 + $1,200 = $1,360 + $10,000 Bal.

AP1-2 Expanded Accounting Equation• ______ ASSETS = LIABILITIES + Owner’s EQUITY• Prepaid AP/ AP/ Frank Mori,• Cash + Supplies + Insurance = Swan’s + York + Capital____• $0 + $0 + $0 = $0 + $0 + $0 Bal.• + 2,000 +2,000__ (1)• $ 2,000 + 0 + 0 = 0 + 0 + $ 2,000 Bal.• - 600 + 600 ___(2)• 1,400 + 0 + 600 = 0 + 0 + 2,000 Bal.• _ + 100 ____________ +100________________________ (3)• 1,400 + 100 + 600 = 100 + 0 + 2,000 Bal.• _____________+ 500 + 500________________ (4)• 1,400 + 600 + 600 = 100 + 500 + 2,000 Bal.• - 100 -100________________________(5)• 1,300 + 600 + 600 = 0 + 500 + 2,000 Bal.• __- 300 -300________________ (6)• 1,000 + 600 + 600 = 0 + 200 + 2,000 Bal.• __- 500 + 500_____________________________________________ (7)• 500 + 1,100 + 600 = 0 + 200 + 2,000 Bal.• + 500 + 500 (8)• $1,000 + $1,100 + $600 = $0 + $200 + $2,500 Bal.

• Transactions:• (1) Received cash from owner as an investment, $2,000• (2) Paid cash for insurance, $600• (3) Bought supplies on account from Swan’s Supply Company, $100• (4) Bought supplies on account from York Company, $500• (5) Paid cash on account to Swan’s Supply Company, $100• (6) Paid cash on account to York Company, $300• (7) Paid cash for supplies, $500• (8) Received cash from owner as an investment, $500