Question

started a new business in the name of Power Electrical on October 1,2017. Dunng October, a number of activides occurmed and the following totals resulted at October 31, 2017 (shown in accounting equation format Liabildes+Equity Office 43,000$8.300 $3.200 $41,000$20.500$31,000$85.000 During November, the following occurred Nov. 1 Rented office space and paid cash for the month's rent of $8,500 and agreeing to pay the balance in 30 days Nov. 6 Completed electrical work and immediately collected $3,300 for doing the work 3 Purchased electrical equipment for $31,000 from an electrician who was going out of business, by using $16.500 in personal funds 5 Purchased office supplies by paying $3,100 cash. 8 Purchased $6,500 of office equipment on credin 15 Completed electrical work on credit in the amount of $7.300 16 Interviewed and hired a part-time electrician who will be paid $6.600 each month He will begin work in three weeks 18 Purchased $2.300 of office supplies on credn 20 Paid for the office equipment purchased on Novergber 8 24 Biled a client $5,450 for electrical work; the balance is due in 30 days 28 Received $7,300 for the work completed on Novembee 15 30 Paid the office assistant's salary of $5,700 30 Paid the monthly utility bils of $4,900 30 Power withdrew $2,700 from the business for personal use. Required Complete the following tabie. Use additions and each change in equity, state whether the change was caused by an investment, a revenue, an expense, or a total for each item and verify that the equation is in balance. (Enter all amounts as positive transactionlevent, select "No Entry Required" in the equity transaction field) t subtractions to show the effects of each November actvity on the items in the equation For withdrawal. Determine the Sinal values If no entry is required for a Office ElectricalAccounts Paabe Office Cash 8.300 41,000 5 20,500 S 31.000 85.000 Bal Oct3 15 20 24 28 30 30

Answer 1

Assets

=

Liabilities

+

Equity

Cash

+

Accounts Receivable

+

Supplies

+

Office Equipment

+

Electrical Equip.

=

Accounts Payable

+

Larry power capital

Explanation of Equity Transaction

Bal, Oct 31

$   43,000.00

+

$    8,300.00

+

$ 3,200.00

+

$ 41,000.00

+

$ 20,500.00

=

$ 31,000.00

+

$   85,000.00

Nov-01

$   (8,500.00)

+

+

+

+

=

+

$   (8,500.00)

3

$   16,500.00

+

+

+

+

=

+

$   16,500.00

Cash brought in from personal fund

3

$ (31,000.00)

+

+

+

+

$ 31,000.00

=

+

Cash paid for asset purchased

5

$   (3,100.00)

+

+

$ 3,100.00

+

+

=

+

Cash paid for asset purchased

6

$      3,300.00

+

+

+

+

=

+

$      3,300.00

Revenue earned

8

+

+

+

$    6,500.00

+

=

$    6,500.00

+

Purchased asset for business

15

+

$    7,300.00

+

+

+

=

+

$      7,300.00

Revenue earned

16

+

+

+

+

=

+

No entry required

18

+

+

+

$    2,300.00

+

=

$    2,300.00

+

Purchased asset for business

20

$   (6,500.00)

+

+

+

+

=

$ (6,500.00)

+

Paid for credit balance

24

+

$    5,450.00

+

+

+

=

+

$      5,450.00

Revenue earned

28

$      7,300.00

+

$ (7,300.00)

+

+

+

=

+

Received against balance

30

$   (5,700.00)

+

+

+

+

=

+

$   (5,700.00)

Expense paid

30

$   (4,900.00)

+

+

+

+

=

+

$   (4,900.00)

Expense paid

30

$   (2,700.00)

+

+

+

+

=

+

$   (2,700.00)

Expense paid

$      7,700.00

+

$ 13,750.00

+

$ 6,300.00

+

$ 49,800.00

+

$ 51,500.00

=

$ 33,300.00

+

$   95,750.00