Sanyu Sony started a new business and completed these transactions during December.

December 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock.
December 2 The company paid $1,000 cash for the December rent.
December 3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to pay the $8,200 balance in 30 days.
December 5 The company purchased supplies by paying $800 cash.
December 6 The company completed electrical work and immediately collected $1,200 cash for these services.
December 8 The company purchased $2,530 of office equipment on credit.
December 15 The company completed electrical work on credit in the amount of $5,000.
December 18 The company purchased $350 of supplies on credit.
December 20 The company paid $2,530 cash for the office equipment purchased on December 8.
December 24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.
December 28 The company received $5,000 cash for the work completed on December 15.
December 29 The company paid the assistant's salary of $1,400 cash for this month.
December 30 The company paid $540 cash for this month's utility bill.
December 31 The company paid $950 cash in dividends to the owner (sole shareholder).

Required:
Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation.

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anthougo anthougo · Answer 1 · 2021-09-27T13:01:25+02:00

The effects of transactions on the accounts of Sanyu Electric during December, based on the accounting equation are as follows:

Accounting equation is: Assets = Liabilities + Equity

Dec. 1: Cash +$65,000 = Liabilities + Equity (Common Stock) +$65,000

Dec. 2: Cash -$1,000 = Liabilities + Equity (Rent Expense) -$1,000

Dec. 3: Electrical Equipment +$13,000 Cash -$4,800 = Liabilities (Accounts Payable) +$8,200 + Equity

Dec. 5: Supplies +$800 Cash -$800= Liabilities + Equity

Dec. 6: Cash +$1,200 = Liabilities + Equity (Service Revenue) +$1,200

Dec. 8: Office Equipment +$2,530 = Liabilities (Accounts Payable) +$2,530 + Equity

Dec. 15: Accounts Receivable +$5,000 = Liabilities + Equity (Service Revenue) +$5,000

Dec. 18: Supplies +$350 = Liabilities (Accounts Payable) +$350 + Equity

Dec. 20: Cash -$2,530 = Liabilities (Accounts Payable) -$2,530 + Equity

Dec. 24: Accounts Receivable +$900 = Liabilities + Equity (Service Revenue) +$900

Dec. 28: Cash -$5,000 = Liabilities (Accounts Receivable) -$5,000 + Equity

Dec. 29: Cash -$1,400 = Liabilities + Equity (Salary Expense) -$1,400

Dec. 30: Cash -$540 = Liabilities + Equity (Utility Expense) -$540

Dec. 31: Cash -$950 = Liabilities + Equity (Dividends) -$950

Data analysis based on accounting equation:

Dec. 1: Cash +$65,000 Common Stock +$65,000

Dec. 2: Cash -$1,000 Rent Expense -$1,000

Dec. 3: Electrical Equipment +$13,000 Cash -$4,800 Accounts Payable +$8,200

Dec. 5: Supplies +$800 Cash-$800

Dec. 6: Cash +$1,200 Service Revenue +$1,200

Dec. 8: Office Equipment +$2,530 Accounts Payable +$2,530

Dec. 15: Accounts Receivable +$5,000 Service Revenue +$5,000

Dec. 18: Supplies +$350 Accounts Payable +$350

Dec. 20: Cash -$2,530 Accounts Payable -$2,530

Dec. 24: Accounts Receivable +$900 Service Revenue +$900

Dec. 28: Cash -$5,000 Accounts Receivable -$5,000

Dec. 29: Cash -$1,400 Salary Expense -$1,400

Dec. 30: Cash -$540 Utility Expense -$540

Dec. 31: Cash -$950 Dividends -$950

Thus, the effects of December transactions on the accounts of Sanyu Electric based on the accounting equation have been showed.

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