An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?
Answer (2)
Transaction 1: Collected cash from an account receivable (b).
Transaction 2: Purchased supplies on credit (a).
Transaction 3: Billed a client for services provided (g).
Transaction 4: Paid cash toward an account payable (h).
Transaction 5: The owner invested cash in the business in exchange for its common stock (i). 1 : b , 2 : a , 3 : g , 4 : h , 5 : i
Explanation
Analyzing the Transactions We need to analyze each transaction and match it with the appropriate explanation from the list provided.
Transaction 1 Transaction 1: Cash decreases by $4,000, and Accounts Receivable increases by $4,000. This indicates that the company collected cash from an account receivable. Therefore, transaction 1 corresponds to explanation b.
Transaction 2 Transaction 2: Supplies increase by $1,000. This suggests that the company purchased supplies. We need to determine if it was on credit or with cash. Looking at the options, we have 'a. The company purchased $1,000 of supplies on credit' and 'e. The company purchased supplies for $1,000 cash'. Since there is no change in accounts payable, it means the company purchased supplies for cash. However, the table does not show a decrease in cash. Thus, the company purchased supplies on credit. Therefore, transaction 2 corresponds to explanation a.
Transaction 3 Transaction 3: Revenues increase by $1,900. This suggests that the company billed a client for services provided. Therefore, transaction 3 corresponds to explanation g.
Transaction 4 Transaction 4: Cash decreases by $1,000, and Accounts Payable decreases by $1,000. This suggests that the company paid cash toward an account payable. Therefore, transaction 4 corresponds to explanation h.
Transaction 5 Transaction 5: Cash increases by $1,900, Accounts Receivable decreases by $1,900, Land increases by $4,000, and Common Stock increases by $23,000, and Revenues increase by $1,900. This suggests that the owner invested cash in the business in exchange for common stock and the company sold land for cash. However, the increase in cash is only $1,900 and the increase in land is $4,000. The increase in common stock is $23,000 and the increase in revenues is $1,900. This does not match any of the provided explanations. Let's re-examine the table. The cash increases by $1,900, accounts receivable decreases by $1,900, land increases by $4,000. The increase in cash and decrease in accounts receivable could mean the company collected cash from an account receivable. However, the increase in land is not accounted for. The increase in common stock is not related to the transaction. The increase in revenues is also not related to the transaction. The most likely explanation is that the owner invested $1,900 cash in the business in exchange for its common stock. The company also sold land for $4,000 cash. Therefore, transaction 5 corresponds to explanation i.
Final Answer Based on the analysis, the explanations for the transactions are: 1: b 2: a 3: g 4: h 5: i
Examples
Understanding the effects of transactions on the accounting equation is crucial for managing a business's financial health. For example, when a company purchases supplies on credit (transaction 2), it increases both assets (supplies) and liabilities (accounts payable). This affects the company's balance sheet and can influence decisions about cash flow management and future investments. By accurately tracking these transactions, businesses can make informed financial decisions and maintain a clear picture of their financial position.
Approximately 2.81 × 1 0 21 electrons flow through the electric device delivering a current of 15.0 A for 30 seco n d s . This is calculated using the relationship between current, charge, and the charge of a single electron.
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