Reference no: EM133170284

Question - Record the following transactions using the accounting equation and T accounts.

1. Owner contributed $50,000 in cash for company stock.

2. Purchased building for $120,000, making a $20,000 down payment and signing a promissory note for the balance.

3. Sold products to customers for $15,000 cash.

4. Paid utilities expense of $2,000.

5. Reduced note payable with an $8,000 cash payment (ignore interest costs).

6. Incurred expense of $3,000, to be paid in the future (accounts payable).

7. Collected $4,000 on an outstanding account receivable.