Question 2
Problem: Find out how the accounting equation is satisfied after taking into consideration each of the following transactions in the books of Tennis Champ Pty Ltd. Balances are to be carried forward to the next transaction.
                     TRANSACTIONS ASSETS    = LIABILITIES + OWNERS’ EQUITY

1 Commenced business with assets $10,000 =    $0                + $10,000
$10,000.
2 Commenced business with assets $5,000. =                            +
3 Started business with capital of                   =                            +
$100,000.
4 Bought furniture $25,000.                            =                            +
5 Bought goods for cash $20,000                   =                            +
6 Brought goods from Mr. B on credit             =                            +
$25,000.
7 Sold goods to Mr. J on cash $80,000.          =                            +
8 Paid cash to Mr. B. $20,000.                         =                            +
9 Received cash from Mr. J $5,000.                =                            +
10 Owner withdrew cash $20,000.                   =                            +

Question 2 Problem: Find out how the accounting equation is satisf...