Question

a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. 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. The company paid $1,000 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 Receivable Equipment Accounts Payable Common Stock Dividends Revenues - Expenses + + + + + 0 + 0 + 0 + + + 0 + 0 = 0 + + + + + + + + + 0 + + 0 + دام nul nl - 1

Answer 1

Ans:

Assets Accounts Receivable Liabilities Accounts Payable Cash Equipment = 15,000 = Equity Common - Dividend + Revenue - Expenses Stock 75,000 - 1,500 75,000/- + 60,000+ -1,500+ 58,500+ + + + + 1,500 15,000 = 10,000 25,000 = + + 10,000+ 10,000+ + 75,000/- + 1,500 58,500 2,500 + 61,000+ + + 25,000/= 10,000+ 75,000 - + 1,500 + 2,500 - 2,500 - 8,000/- 10,500 - + 8,000+ 8,000 + 10,000+ 75,000/- + 1,500 25,000 6,000 31,000/= + 8,000 + 10,000+ 75,000 - + 10,500 - 1,500 3,000 + 31,000 10,000+ 75,000/- + 10,500 - 4,500 61,000+ -6,000 + 55,000+ -3,000+ 52,000 + 5,000 + 57,000+ -10,000+ 47,000+ -1,000+ 46,000+ 8,000 + -5,000+ 3,000 + + 31,000 75,000 - + 10,500 - 4,500 10,000+ -10,000+ + 3,000 + 31,000/= 75,000/- 10,500 - 4,500 1,000+ 1,000+ Balance 3,000+ 31,000/= 0 + 75,000 - 10,500 - 4,500