Question

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.

Owner invested $67,000 cash in the company along with equipment that had a $17,000 market value in exchange for its common stock.

The company paid $1,500 cash for rent of office space for the month.

The company purchased $17,000 of additional equipment on credit (payment due within 30 days).

The company completed work for a client and immediately collected the $2,200 cash earned.

The company completed work for a client and sent a bill for $8,900 to be received within 30 days.

The company purchased additional equipment for $5,600 cash.

The company paid an assistant $3,200 cash as wages for the month.

The company collected $5,800 cash as a partial payment for the amount owed by the client in transaction e.

The company paid $17,000 cash to settle the liability created in transaction c.

The company paid $1,400 cash in dividends to the owner (sole shareholder).

Required:

Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

Answer 1

LIABILITIES ASSETS EQUITY Accounts Accounts Common Payable Cash Receivable Stock Dividend Equipment Revenue Expenses $ 67,000.00 $17,000.00 $84,000.00 a $ -1,500.00 $ 65,500.00 2$ $84,000.00 $ 1,500.00 $ 1,500.00 $17,000.00 = $17,000.00 = $34,000.00 = Bal. $ 17,000.00 $ 17,000.00 2$ $84,000.00 $4 IC $ 1,500.00 $ 65,500.00 Bal. $4 2$ $ 2,200.00 $ 2,200.00 $ 8,900.00 $11,100.00 d $ 2,200.00 $ 67,700.00 + $34,000.00 = $ 17,000.00| + $ 1,500.00 $84,000.00 Bal. $ 8,900.00 $ 8,900.00| + le $34,000.00 = $84,000.00 $ 1,500.00 $ 67,700.00 + $ -5,600.00| + $ 62,100.00| + $ -3,200.00 $ 58,900.00 + $ 5,800.00 $ 64,700.00 $ 17,000.00 + Bal. 2$ $ 5,600.00 $39,600.00 f %3D $ 17,000.00 + $84,000.00 $ 1,500.00 $ 3,200.00 $ 4,700.00 $ 8,900.00 + $11,100.00 Bal. $39,600.00 $11,100.00 $ 8,900.00 $ -5,800.00 $ 3,100.00 $ 17,000.00 + $84,000.00 Bal. %3D 2$ $ 17,000.00 $ -17,000.00 2$ + $39,600.00 $84,000.00 $11,100.00 $ 4,700.00 Bal. + %3D $-17,000.00 $ 47,700.00 $ -1,400.00 $ 46,300.00 $4 $ 3,100.00 2$ $84,000.00 2$ $ 4,700.00 + %3D $39,600.00 $11,100.00 Bal. 2$ $84,000.00 $ 1,400.00 $ 1,400.00 24 $ 4,700.00 j $39,600.00 $ 3,100.00 $11,100.00 Bal.