Exercise 1: Accounting Equation Show the effect of the following transactions on the accounting equation using the following headings: Bank Accounts Receivable Vehicles Expenses Drawings Accounts Payable Capital Fees 01-May Willy Whizz commenced business as a builder. He opened a bank account for the business with his cash 26,000 2 Paid one month’s rent for the workshop 250 3 Purchased a truck from Used Trucks Ltd 8,000 4 Paid Used Trucks Ltd on account 4,000 5 Obtained a loan for the business from T Drage 10,000 7 Paid Used Trucks Ltd the balance owing 4,000 8 Purchased equipment on credit from Mountain Equipment Supplies Ltd 1,500 9 Paid rates on private residence 600 10 Paid Tokaanu garage for petrol 50 11 Purchased hardware (expenses) from Tongariro Hardware on credit 350 12 Invoiced T Roberts paid account in full 6,500 17 T Roberts paid account in full 19 Paid Ruaoehu Press for advertising 150 30 Will draw a cheque for living expenses 350
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