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You deposit a check for 15000 from the company owner into the checking account. Show thr effect on the accounting equation using the extended accounting equation

Respuesta :

jepessoa

Answer:

Assets = Liabilities + Equity     Revenue - Expenses = Income   Cash flows

cash                           capital                                                           $       type

$15,000 =  $0 +      $15,000          $0     -   $0           = $0       15,000  financing

You deposited $15,000 which increases the cash account and at the same type increases the paid-in capital account. Since it is not part of the operating activities, it doesn't affect revenues, expenses or income. The $15,000 increase in cash is classified as a financing activity cash inflow.

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