Question

Required information [The following information applies to the questions displayed below.] On September 1, Pat Hopkins established Ona Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $12,000 for 1,200 shares of OCC. On September 8, OCC borrowed $24,500 from a bank, promising to repay the bank in two years. On September 10, OCC wrote a check for $27,500 to acquire computer equipment. On September 15, OCC received $2,250 of supplies purchased on account and, on September 16, paid $2,300 for September rent. Through September 22, OCC provided its customers $12,750 of services, of which OCC collected $7,900 in cash. On September 28, OCC paid $485 for Internet and phone service this month. On September 29, OCC paid wages of $5,850 for the month. Finally, on September 30, OCC submitted its electricity meter reading online and determined that the total charges for the month will be $715. This amount will be paid on October 14 through a preauthorized online payment. Required: 1. Indicate the accounting equation effects of the September events, using table below. (Enter any decreases to account balances with a minus sign.)

Answer 1

Accounting equation

	Assets		=	Liabilities		+	Stockholder's equity
Sep 01	Cash	12000					Owner's equity	12000
Sep 08	Cash	24500		Bank loan payable	24500
Sep 10	Equipment	27500
	Bank	-27500
Sep 15	Supplies	2250		Account payable	2250
Sep 16	Cash	-2300					Rent expense	-2300
Sep 22	Cash	7900					Service revenue	12750
	Account receivable	4850
Sep 28	Cash	-485					Phone and interest expense	-485
Sep 29	Cash	-5850					Wages expense	-5850
Sep 30				Account payable	715		Electricity expense	-715