Question

CLA1 Accounting for the establishment of a business LU 2-1, LU 2-2, LU 2-3, LU 2-4, LU 2-5) The following information applies to the questions displayed below] Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30 a Received 585,000 cash when issuing 8,500 new common shares b. Purchased and by paying $4,500 cash and signing a note payable for $6,000 due in three years c. Hired a new aesthetician for a salary of $1.500 a month, starting next month. d. NGS purchased a company car for 523,000 cash list price of $26.000) to assist in running errands for the business e. Bought and received $1,000 in supplies for the spa on credit Paid $140 of the amount owed in (e) g. Nicole sold 100 of her own personal shares to Raea Gooding for $800. CC2-1 Part 2 2. Assuming that the beginning balances in each of the accounts are zero, complete T-accounts to summarize the transactions in a (9) Supplies Beg Bal Beg Bal 23000 1.000 8 [End Bal 61.000 Equipment Beg Ball 23.000 or - 10500 / / 23 000 - JOILLO Accounts Payable Beg B

Answer 1

cash to commen 85000/ by land 4,500 stock Ihy Equipment 2000 thy Account payable 140 by commanstoak 800 by balance all 56560) 85000 85000 Equepment To cash 23000 hy balanceeld 22000 23000 T23000 Suppliet 8 To account 1000 by balanced 100 payable Looo 1000 land losoo To cash To Notes I payable 4,500 hy basemeld 6000 resoo Alwynt payable To cash 140 by supplies To belona (860) 1000 Cla lood 100

Notge payable (long term) i 6000 by land to baraneld Good 16000 Good - Commen stock to cash 8oo hy common stock to bebacld 84200 85000 85000 SsOOL NICOLE'S GETAWAY SPA Balance sheet nt April 30 Assets carrert Assets 56560 Supplie 1000 rutal current Assets 57,560 23000 Fixed Assets Equipment land Total Assets 1910 60 8 60 6000 i abilities curent liabilities Account pay able Motes payable Long teom) stockholdes Equity common stolk Gooi 84,200 91060 current Ratio at April 30 is calculated below:- current Ratio= current Assets. current liabilities S7560 = 66.93 860