230.For each of the following transactions, identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L", and "E" to indicate assets, liabilities, and equity, respectively. Part A has been completed as an example.
231.The following schedule reflects shows the first month's transactions of the Green Construction Company Inc.:
Cash+Accounts
Receivable+Supplies+Equipment=Accounts
Payable+Stockholders’ Equity
1.+20,000+20,000
2.-5,000+5,000
3.+$1,500+1,500
4.+3,000+3,000
5.+1,000+1,500 +2,500
6.-750-750
7.+500-500
8.-400-400
9.-2,000-2,000
Provide descriptions for each transaction.
232.The accountant of Action Adventure Games, Inc. prepared a balance sheet after every 10 day period. The only resources invested by the owner were at the start of the company on June 1. During June, the first month of operation, the following balance sheets were prepared:
ACTION ADVENTURE GAMES, Inc.
Balance Sheet
June 10
AssetsStockholders’ Equity
Cash$60,000Common stock + Retained earnings$60,000
Total assets$60,000Total liabilities and equity$60,000
ACTION ADVENTURE GAMES, Inc.
Balance Sheet
June 20
AssetsLiabilities
Cash$48,000Notes payable$18,000
Land10,000Stockholders’ Equity
Building20,000Common stock + Retained earnings60,000
Total assets$78,000Total liabilities and equity$78,000
ACTION ADVENTURE GAMES, Inc.
Balance Sheet
June 30
AssetsLiabilities
Cash$51,000Accounts payable$2,000
Office supplies2,000Notes payable18,000
Land10,000Stockholders’ Equity
Building20,000Common stock + Retained earnings63,000
Total assets$83,000Total liabilities and equity$83,000
Required: