Question

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. o. Lita Lopez invested $66,000 cash and office equipment valued at $30,000 in the company b. The company purchased an office suite for $44,000 cash. c. The company purchased office equipment for $5.700 cash. d. The company purchased $3,700 of office supplies and $1,400 of office equipment on credit e. The company paid a local newspaper $870 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $4,500 for the service g. The company designed a financial plan for another client and immediately collected a $8,500 cash fee h. Lita Lopez withdrew $1,500 cash from the company for personal use. i. The company received $3,500 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 $2.500 cash for the office secretary's wages for this period Required 2. Enter the amount of each transaction on individual tems of the accounting equation. (Reductions in account balances should be indicated with a minus sign.) Assets Liabilities Equity Accounts Office Office Accounts L. Lopez, L. Lopez. -Withdrawals R CashReceivable SuppliesEquipment Office SuitePayable Capital a S 66,000 + 30,000 S 96,000 Bal 66,000 0,000(44000) 96,000 Bal 66,000 30,000(44.000) 96,000 < Prev 60f 6İİİ Ne arch

Answer 1

	Cash +	Accounts	office	office	Office	Accounts	Lopez	Lopez		Retained	Revenues -	Expense=	Net
		Receivable+	Supplies +	Equipment+	Suites =	payable +	Capital -	Withdrawals+		earnings			Income/(Loss)
a.	66000			30000			96000
Balance	66000			30000			96000
b.	-44000				44000
balance	22000			30000	44000		96000
c.	-5700			5700
Balance	16300			35700	44000		96000
d.			3700	1400		5100
Balance	16300		3700	37100	44000	5100	96000
e.	-870									-870		870	-870
Balance	15430		3700	37100	44000	5100	96000			-870		870	-870
f.		4500								4500	4500		4500
Balance	15430	4500	3700	37100	44000	5100	96000			3630	4500	870	3630
g.	8500									8500	8500		8500
Balance	23930	4500	3700	37100	44000	5100	96000			12130	13000	870	12130
h.	-1500							1500
Balance	22430	4500	3700	37100	44000	5100	96000	1500		12130	13000	870	12130
i.	3500	-3500
balance	25930	1000	3700	37100	44000	5100	96000	1500		12130	13000	870	12130
j.	-700					-700
balance	25230	1000	3700	37100	44000	4400	96000	1500		12130	13000	870	12130
k.	-2500									-2500		2500	-2500
Balance	22730	1000	3700	37100	44000	4400	96000	1500		9630	13000	3370	9630