Problem Number
1) Show the effect on the accounting equation of the following events for the APRIL Company.
Example: Investors purchased common stock in APRIL for $1,000 cash.
Answer: Assets increasedOwners' Equity increased
a) APRIL borrowed $8,000 from the bank on a note.
b) APRIL purchased a desk and two chairs for $1,500 cash.
c) APRIL purchased supplies on account for $700.
d) APRIL provided services to others for $7,200 cash.e) APRIL provided services to others for $2,300 on account.
f) APRIL paid $280 cash for a newspaper ad.
g) APRIL collected $600 of the money it was owed due to the services provided in e.
h) APRIL paid off $300 of its supplies account created in c.
i) APRIL paid its utility bill in the amount of $400 cash.
j) APRIL paid a dividend to its investors in the amount of $500 cash.
k) APRIL paid off half of its bank note from (a) by giving the bank $4,000 of common stock.