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The equipment listed under assets on the balance sheet increased by $15,000 bringing the equipment assets to 35,000. The company will owe $15,000 as shown under accounts payable until the equipment is paid for.
3. A cash payment of 15,000 was spent to obtain baking ingredients needed to fulfill orders. This transaction increases the company's property and is shown as an asset to the company. However, the cash account is reduced by that same amount.
4. Later in November, the company issued a check for $3,000, towards its debt to Trevor Depot for previously purchased office equipment. This transaction decreased the company's cash by $3,000 and reduced the company's debt as reflected in Accounts Payable by $3000, leaving a cash balance of $42,000 and an Account Payable Balance of $12,000...
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