Mia Anabelle decided to open Mia\'s Nails Spa. Mia completed the following trans

Question

Mia Anabelle decided to open Mia's Nails Spa. Mia completed the following transaction:

a. invested $20,000 cash from her personal bank account into the business.
b. Bought store equipment for cash, $4000
c. Bought additional store equipment on account, $6000
d. Paid $1000 cash to partially reduce what was owed from transaction c

Based on this information, record these transactions into the basic accounting equation.

I tried emailing me teacher for help but he has not responded and Im completly lost

Explanation / Answer

Basic Acct eqn is Asset = Liabilities + Owners' Equity a. invested $20,000 cash from her personal bank account into the business. $20000 (Dr Cash) = 0+$20000 (Cr Ow Eq) +20000 = 0+20000 b. Bought store equipment for cash, $4000 $4000 (Cr Cash) + $4000 (Dr Asset) = 0 -4000+4000 = 0 c. Bought additional store equipment on account, $6000 $6000 (Dr Asset) = Sundry Creditor (Cr 6000) + 0 6000 = 6000+0 d. Paid $1000 cash to partially reduce what was owed from transaction c $1000 (Cr Cash) = Sundry Creditor (Dr 1000) + 0 -1000 = -1000+0

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