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Sagot :
Answer:
The accounting equation holds as follows:
Asset = Liabilities + Equity = $80,000
Explanation:
Note: See the attached excel file for the analysis of the Effect of June Transactions on the Accounting Equation
From the last balances in the attached excel file, we have:
Assets = Cash + Receivable + Equipment = $41,000 + $8,000 + $31,000 = $80,000
Liabilities = Payable = $0
Equity = M. Chen, Capital - M. Chen, Withdrawals + Revenue - Expenses = $75,000 - $1,000 + $10,500 - $4,500 = $80,000
Liabilities + Equity = $0 + $80,000 = $80,000
Therefore, the accounting equation holds as follows:
Asset = Liabilities + Equity = $80,000
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