Question

Saved Help Save & Exit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $68,000 cash and office equipment valued at $34,000 in the company. b. The company purchased an office suite for $47,000 cash. c. The company purchased office equipment for $5,700 cash. d. The company purchased $3,600 of office supplies and $1,600 of office equipment on credit. e. The company paid a local newspaper $830 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $5,000 for the service. g. The company designed a financial plan for another client and immediately collected a $8,300 cash fee. h. Lita Lopez withdrew $900 cash from the company for personal use. i. The company received $4,000 cash as partial payment from the client described in transaction f j. The company made a partial payment of $800 cash on the equipment purchased in transaction d. k. The company paid $1,700 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. (Reductions in account balances should be indicated with a minus sign.) Prev 1 of 8 Next> EN

Answer 1

1)	Total Assets		=	Total Liabilities		+	Total Equity
a)	Cash	$68,000	=			+
	Office Equipment	$34,000	=			+	Capital	$102,000
		$102,000	=			+		$102,000
b)	Office Suit	$47,000	=			+
	Cash	($47,000)	=			+
		$0	=			+
c)	Office Equipment	$5,700	=			+
	Cash	($5,700)	=			+
		$0	=			+
d)	Office Supplies	$3,600	=			+
	Office Equipment	$1,600	=	Accounts Payable	$5,200	+
		$5,200	=		$5,200	+
e)	Cash	($830)	=			+	Printing Expenses	($830)
		($830)	=			+		($830)
f)	Accounts Receivable	$5,000	=			+	Service Revenue	$5,000
		$5,000	=			+		$5,000
g)	Cash	$8,300	=			+	Service Revenue	$8,300
		$8,300	=			+		$8,300
h)	Cash	($900)	=			+	Drawings	($900)
		($900)	=			+		($900)
i)	Cash	$4,000	=			+
	Accounts Receivable	($4,000)	=			+
		$0	=			+
j)	Cash	($800)	=	Accounts Payable	($800)	+
		($800)	=		($800)	+
k)	Cash	($1,700)	=			+	Salaries	($1,700)
		($1,700)	=			+		($1,700)