1. Objective : Differentiate between different types of accounts.
Bill Alexander opened a software consulting firm that immediately paid $17,000 for a computer. Was Alexander's computer an expense of the business? If not, explain.
2. Objective : Analyze the impact of business transactions on accounts.
Cathey's] Catering began with cash of $15,000. Cathey then bought supplies for $4,400 on account. Separately, Cathey paid $7,500 for equipment. Answer these questions.
a. How much in total assets does Cathey have?
b. How much in liabilities does Cathey owe?