Question

a. Owner invested $66,000 cash in the company along with equipment that had a $10,000 market value in exchange for its common stock. b. The company paid $1,100 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $1,700 cash earned. e. The company completed work for a client and sent a bill for $8,200 to be received within 30 days. f. The company purchased additional equipment for $6,300 cash. g. The company paid an assistant $2,900 cash as wages for the month. h. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $10,000 cash to settle the liability created in transaction c. j. The company paid $1,200 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities Equity Accounts Accounts Common Stock Cash Equipment Dividends Revenues Expenses Receivable Payable 30,000 a. %3D b. %3D Bal. 30,000 + %3D C. %3D 30,000 + Bal. %3D d. 30,000 + Bal. %3D e. %3D 30,000 + Bal. %3! f. %3D 30,000 + Bal. %3D g. %3D 30,000 + Bal. %3D h. 30,000 + Bal. %3D i. 30,000 + Bal. %3D j. Bal. %3D 30,000 + 2$ %24 %24 %24 %24 I || I || %24 %24

Answer 1

Answer

	Cash	Accounts receivables	Equipment	Accounts Payable	Common Stock	Dividends	Revenues	Expenses
a	$66,000				$66,000
b	($1,100)							$1,100
Bal	$64,900	$0	$0	$0	$66,000	$0	$0	$1,100
c			$10,000	$10,000
Bal	$64,900	$0	$10,000	$10,000	$66,000	$0	$0	$1,100
d	$1,700						$1,700
Bal	$66,600	$0	$10,000	$10,000	$66,000	$0	$1,700	$1,100
e		$8,200					$8,200
Bal	$66,600	$8,200	$10,000	$10,000	$66,000	$0	$9,900	$1,100
f	($6,300)		$6,300
Bal	$60,300	$8,200	$16,300	$10,000	$66,000	$0	$9,900	$1,100
g	($2,900)							$2,900
Bal	$57,400	$8,200	$16,300	$10,000	$66,000	$0	$9,900	$4,000
h	$4,500	($4,500)
Bal	$61,900	$3,700	$16,300	$10,000	$66,000	$0	$9,900	$4,000
i	($10,000)			($10,000)
Bal	$51,900	$3,700	$16,300	$0	$66,000	$0	$9,900	$4,000
j	($1,200)					$1,200
Bal	$50,700	$3,700	$16,300	$0	$66,000	$1,200	$9,900	$4,000