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: a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value b. The company paid $1,500 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 $2,500 cash earned e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days. f. The company purchased additional equipment for $6,000 cash g. The company paid an assistant $3,000 cash as wages for the month. h. The company collected $5,000 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. Owner withdrew $1,000 cash from the company for personal use. 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

	Cash	+	Accounts Receivable	+	Equipment	=	Accounts Payable	+	M. Chen, Capital	-	M. Chen, Withdrawals	+	Revenue	-	Expenses
a.	60000	+		+	15000	=		+	75000	-		+		-
b.	-1500	+		+		=		+		-		+		-	1500
Bal.	58500	+		+	15000	=		+	75000	-		+		-	1500
c.		+		+	10000	=	10000	+		-		+		-
Bal.	58500	+		+	25000	=	10000	+	75000	-		+		-	1500
d.	2500	+		+		=		+		-		+	2500	-
Bal.	61000	+		+	25000	=	10000	+	75000	-		+	2500	-	1500
e.		+	8000	+		=		+		-		+	8000	-
Bal.	61000	+	8000	+	25000	=	10000	+	75000	-		+	10500	-	1500
f.	-6000	+		+	6000	=		+		-		+		-
Bal.	55000	+	8000	+	31000	=	10000	+	75000	-		+	10500	-	1500
g.	-3000	+		+		=		+		-		+		-	3000
Bal.	52000	+	8000	+	31000	=	10000	+	75000	-		+	10500	-	4500
h.	5000	+	-5000	+		=		+		-		+		-
Bal.	57000	+	3000	+	31000	=	10000	+	75000	-		+	10500	-	4500
i.	-10000	+		+		=	-10000	+		-		+		-
Bal.	47000	+	3000	+	31000	=	0	+	75000	-		+	10500	-	4500
j.	-1000	+		+		=		+		-	1000	+		-
Bal.	46000	+	3000	+	31000	=	0	+	75000	-	1000	+	10500	-	4500

Answer 2

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: a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 Market value. b. The company paid $1,500 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 $2,500 cash earned. e. The company completed work for a client and sent a bill for $8,000 to be received within 30 Days. f. The company purchased additional equipment for $6,000 cash. g. The company paid an assistant $3,000 cash as wages for the month. h. The company Collected $5,000 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. Owner Withdrew $1,000 cash from the company for personal use. Required (a) Prepare a tabular analysis