On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Cash Accounts Payable

Accounts Receivable Shawn Dahl, Capital

Office Equipment Revenue

Canoe and Kayak Equipment Expenses

Transactions:

Shawn Dahl invested $50,000 in cash to open the business

Paid $14,200 in cash for the purchase of kayak and canoe equipment

Paid $2,200 in cash for rent expense

Purchased additional kayak and canoe equipment for $4,900 on credit

Received $4,600 in cash for kayak rentals

Rented canoes and kayaks for $3,400 on account

Purchased office equipment for $375 in cash

Received $1,350 in cash from credit clients

Shawn Dahl withdrew $1,800 in cash for personal expenses

Calculate asset, Liability and Owner's equity.

Assets = $ 55650

Liability = 8300

Owner's equity=47350

Liability and Owner's equity.=8300 + 47350=$55650

Explanation:

Using The basic equation we add the transaction to arrive at the actual amounts.

Assets = Liabilities + Owner's Equity

1. 50,000 = 50,000

Cash + Assets = Liabilities + Owner's Equity

2. 35,800 + 14,200 = 50,000

Cash + Assets = Liabilities + Owner's Equity - Rent Expense

3) 33600 + 14200 = 50,000 - 2,200

Cash + Canoes = Liabilities + Owner's Equity - Rent Expense

4) 33600 + 14200 + 4900 = 4900 + 50,000 - 2,200

Cash + Canoes = Liabilities + Owner's Equity - Rent Expense

5) 33600 + 19,100 + 3,400 = 4900 + 3400 + 50,000 - 2,200

Cash + Canoes + Office Equip = Liabilities + Owner's Equity - Rent Expense

6) 33225+22500 + 375 = 8,300 + 50,000 - 2,200

Cash + Canoes + Office Equip + A / R = Liabilities + Owner's Equity - Rent Expense

7) 33225+22500 + 375 + 1350 = 8,300 + 50,000 - 2,200 + 1350

Cash + Canoes + Office Equip + A / R = Liabilities + Owner's Equity - Rent Expense - drawings

8) 31425+22500 + 375 + 1350 = 8,300 + 50,000 - 2,200 + 1350-1800

We get

Cash = 31425

Kayak And Canoe 22500

Office Equipment = 375

Accounts Receivable = 1350

Accounts Payable = 8300

Capital less Drawings = 50,000 - 1800 = 48,200 (850) = 47350

Revenue - Expenses = 1350 - 2200 = (850)

Assets = Cash + Kayak And Canoe + Office Equipment + Accounts Receivable = 31425 + 22500 + 375 + 1350 = $ 55650

Liability = 8300

Owner's equity=47350

Liability and Owner's equity.=8300 + 47350=$55650