41 listed below are the transactions for clowns and magic company limited for each t 4351940

41) Listed below are the transactions for Clowns and Magic Company Limited.  For each transaction, determine the amount and the effect on the accounting equation.

1.Purchased a special magic machine for $2,000, making a 20% down payment in cash, the remainder is on account.

2.Purchased $350 in magic supplies for cash.

3.Billed customers $1,500 for magic shows.

4.Purchased portable magic machine for children’s event for $500, fully financed by a bank loan.

5.Collected $800 from customers for services previously billed.

6.Paid balance owing on special magic machine.

7.Incurred travel expenses of $85 on account.

8.Completed party services for customers who pay $440 cash.

9.Paid $1,250 in wages to employees.

42) Calculate the missing amount in each category of the accounting equation.

43) The following amounts are the ending balances from Lavender Water Distillery accounting records for December 31, 2014.

Loans Payable

10,000

Cash

55,000

Accounts Receivable

50,000

Accounts Payable

65,000

Common Shares

50,000

Retained Earnings

5,000

Supplies

1,000

Equipment

24,000

a) For the items listed above, fill in the appropriate classification to indicate whether the item is an asset, liability, or shareholders' equity item.

b) Calculate the total assets, total liabilities, and total shareholders’ equity.

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