Assets, Liabilities and equity
I need to know if this is correct, if its not an explanation would be great :) I'm not an accounting student, just taking it for GE and I'm just confused..
Indicate where each tansaction causes an increase (+), decrease (-) or no change (NC) in assets, liabilities and equity
(type of transaction - asset/liability/equity)
Purchase supplies on credit - NC/+/-
Paid for previously purchases supplies - -/NC/-
Paid for employees weekly salary - -/NC/-
Paid out owner's draw - -/NC/-
Purchases a truck with cash - -/NC/-
Received a telephone bill to bepaid next month - no idea
One more...
At the beginning on the year, Gilbert Co's assets were $180,000 and its equity was $100,000. During the year assets increased by 60,000 and liabilities increased by 10,000. What was the equity at the end of the year?
I thought Assets=Liabilities + Owners Equity but it doesn't seem right when I do it. Are Assets always perfectly equal to L and OE?
180000=80000+100000
+60000=+10000
240,000=90,000+150,000
making OE at the end of the year $150,000? It just seems like its too much.