Reference no: EM132466924

Question 1: Determine the effect of each day's transaction to the accounting equation. Miss Janelle owns a restaurant in Laguna called Miss Janelle's Restaurant. The restaurant has been operating for several months now. Currently it has the following accounts recorded in her books:

(1) Cash 10,000,

(2) Account Payable 20,000,

(3) Equipment 50,000,

(4) Receivables 2,000 (

5) Owner's Equity (unknown),

(6) Inventory 30,000. During the month of April, the following transactions occurred.

Point 1. Purchased inventory on credit for 20,000.

Point 2. Borrowed additional 3000 from a local bank.

Point 3. Purchased kitchen equipment for 1000.

Point 4. Paid the inventory purchased in credit.

Point 5. Celebrated their 10th Anniversary. Mister Ramirez incurred the party expenses of 5000.

Point 6. Disposed 5000 worth of equipment and replaced it by purchasing 10,000 new equipment through cash.

Point 7. Miss Janelle hired her sister, Joy, to help with the work in her restaurant. Joy signed a contract of employment with 5000 as the starting salary.

Point 8. Paid the bank 3000 for the loan plus interest expense of 500.

Point 9. Paid income taxes of 1000.