[blamer89]

So we have homeworkd due Monday and I tried to solve this exercise but I just got stuck and don't know how to continue, actually my accounting is quiet good but I just can't come with the answer so the question is:
The beginning of the term (01.01.2008) , the balance sheet items of the Star Company are shown below;
Cash $14,000
Banks $20,000
Check Received $11,000
Account Receivable 20,000
Commercial Goods $35,000
Buildings $200,000
Furniture and Fixtures $50,000
Bank Loans $50,000
Notes Payable $40,000
Accounts Payable $15,000
Capital -?
I found out the capital by doiing the balance sheet and divided assets with liabilities and since I know that they should equal, I decided that my capital should be 245,000, in order to be equal with assets, Howerver our teacher asked us to do 4 transaction for related assets, liabiities, revenues and expenses and I don't know how to start it. So anyone who knows this, please help me with this.

[pready]

Assets = Liabilities + Equity.

Therefore you need to figure out your total Assets, then the total Liabilities.

Your Equity will be your Total Assets - Your Total Liabilities.

[blamer89]

Thank you for your response but I actually know all of these and found my capital, however I don't know how to come up with 4 transactions in assets, liabilities, revenues and expenses

[april 123]

Do I place inherite under asset and owner's type or just add under asset

[april 123]

how do I analyze the effects of the preceding transaction on the accounting equation

[pready]

Some sample transactions are:

Sold merchandise to a customer
Debit cash or Accounts receivable for the amount
Credit Sales Revenue for the amount

Debit COGS for the cost of the merchandise
Credit Merchandise Inventory for the cost of the merchandise

Purchased a vechicle with a loan.
Debit PP&E for the amount
Credit Notes Payable

Paid Salaries:
Debit Salaries Expense for the amount
Credit Cash for the amount.

Received cash for service to be rendered:
Debit cash for the amount
Credit Unearned Service Revenue for the amount

Service was rendered:
Debit Unearned Service Revenue for the amount
Credit Service Revenue for the amount

Owner purchased equipment for the company:
Debit PP&E for the amount
Credit Owners Equity for the Amount.

[shell1wash]

I'm new at this. If assets increased by $6840 ans stockholders' equity increased by $5610, what was the increase or decrease in liabilities for the year ending 09/30/06?

Shell

[pready]

If an asset increases by $6,840 by owners equity increasing by $5,610, then the difference will be an increase in a liability account.