Question

Problem 1-8A Analyzing effects of transactions LO P1, A1 Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $60,000 cash and office equipment valued at $33,000 in the company in exchange for its common stock. b. The company purchased an office suite for $40,000 cash. c. The company purchased office equipment for $5,400 cash. d. The company purchased $3,900 of office supplies and $1,400 of office equipment on credit. e. The company paid a local newspaper $990 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $4,200 for the service. g. The company designed a financial plan for another client and immediately collected a $8,100 cash fee. h. The company paid $1,300 cash in dividends to the owner (sole shareholder). i. The company received $3,200 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $700 cash on the equipment purchased in transaction d. k. The company paid $1,900 cash for the office secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Complete this question by entering your answers in the tabs below. Required 1 Required 2

Answer 1

As per HOMEWORKLIB POLICY only one question should be answered at at time. The first question is answered below.

	Assets										Liabilities		Equity
	Cash	+	Accounts receivables	+	Office supplies	+	Office equipment	+	Office suite	=	Accounts payable	+	L. Lopez, Capital	-	L. Lopez, Withdrawals	+	Revenue	-	Expenses
a.	$       60,000	+		+		+	$        33,000	+		=		+	$   93,000	-		+		-
b.	$     -40,000	+		+		+		+	$   40,000	=		+		-		+		-
Bal	$       20,000	+	$                 -	+	$             -	+	$        33,000	+	$   40,000	=	$            -	+	$   93,000	-	$                     -	+	$             -	-	$          -
c.	$       -5,400	+		+		+	$          5,400	+		=		+		-		+		-
Bal	$       14,600	+	$                 -	+	$             -	+	$        38,400	+	$   40,000	=	$            -	+	$   93,000	-	$                     -	+	$             -	-	$          -
d.		+		+	$      3,900	+	$          1,400	+		=	$     5,300	+		-		+		-
Bal	$       14,600	+	$                 -	+	$      3,900	+	$        39,800	+	$   40,000	=	$     5,300	+	$   93,000	-	$                     -	+	$             -	-	$          -
e.	$           -990	+		+		+		+		=		+		-		+		-	$       990
Bal	$       13,610	+	$                 -	+	$      3,900	+	$        39,800	+	$   40,000	=	$     5,300	+	$   93,000	-	$                     -	+	$             -	-	$       990
f.		+	$          4,200	+		+		+		=		+		-		+	$      4,200	-
Bal	$       13,610	+	$          4,200	+	$      3,900	+	$        39,800	+	$   40,000	=	$     5,300	+	$   93,000	-	$                     -	+	$      4,200	-	$       990
g.	$         8,100	+		+		+		+		=		+		-		+	$      8,100	-
Bal	$       21,710	+	$          4,200	+	$      3,900	+	$        39,800	+	$   40,000	=	$     5,300	+	$   93,000	-	$                     -	+	$   12,300	-	$       990
h.	$       -1,300	+		+		+		+		=		+		-	$              1,300	+		-
Bal	$       20,410	+	$          4,200	+	$      3,900	+	$        39,800	+	$   40,000	=	$     5,300	+	$   93,000	-	$              1,300	+	$   12,300	-	$       990
i.	$         3,200	+	$        -3,200	+		+		+		=		+		-		+		-
Bal	$       23,610	+	$          1,000	+	$      3,900	+	$        39,800	+	$   40,000	=	$     5,300	+	$   93,000	-	$              1,300	+	$   12,300	-	$       990
j.	$           -700	+		+		+		+		=	$       -700	+		-		+		-
Bal	$       22,910	+	$          1,000	+	$      3,900	+	$        39,800	+	$   40,000	=	$     4,600	+	$   93,000	-	$              1,300	+	$   12,300	-	$       990
k.	$       -1,900	+		+		+		+		=		+		-		+		-	$   1,900
Bal	$       21,010	+	$          1,000	+	$      3,900	+	$        39,800	+	$   40,000	=	$     4,600	+	$   93,000	-	$              1,300	+	$   12,300	-	$   2,890
	Note: Give attention to negative signs.
	Net Income	=	Revenue	-	Expenses
		=	$        12,300	-	$      2,890
		=	$          9,410