Question

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions a. Owner invested $59.000 cash in the company along with equipment that had a $14.000 market value in exchange for its common Stock b. The company paid $2,000 cash for rent of office space for the month C. The company purchased 511000 of additional equipment on credit (payment due within 30 days) d. The company completed work for a client and immediately collected the $2.300 cash earned. e. The company completed work for a client and sent a bill for $7600 to be received within 30 days. f. The company purchased additional equipment for $5.800 cash. 9. The company paid an assistant $3,400 cash as wages for the month. h. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e. The company paid $11,000 cash to settle the liability created in transaction J. The company paid $1.200 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.) Liabilities Common Cash Accounts Retelvable + Equipment - Accounts Payable 50 000 59,000 50.000 50 000 60.000 + 59000 $9.000

Answer 1

= Liabilities Equity Assets Accounts Receivabl Accounts + Equipment = Payable + $ 14,000 Common + Stock Dividends + $ 73,000 - + Revenues - Expenses Cash $ $ $ 59,000 -2,000+ 57,000 + b Bal + - $ - $ -2,000 -2,000 73,000 + + $ + $ + $ 14,000 11,000 = $ 25,000 = $ + $ 11,000 11,000+ $ + 73,000-T 72.000 + -2,000 $ $ $ $ 25,000 = $ 11,000 + $ 73,000 Bal d Bal le 1 Bal 2f B Bal -2,000 + 7,600 7,600 + + 7,600 + - $ 2,300 - 2,300 - $ 7,600 9,900 - $ + $ + $ + $ + $ 11,000 + $ 73,000 -2,000 $ $ $ 25,000 = $ 5,800 30,800 = $ 11,000 + $ 73,000 - + $ 57,000+ 2,300 + 59,300 + + $ 59,300 + $ -5,800 + 53,500 + $ 3,400 + 50,100 + $ 4,500 + $ 54,600 + $ -11,000+ 43,600 + $ -1,200 + 42,400 + $ 9,900 - $ - $ 9,900 - $ -2,000 -3,400 -5,400 5 Bal 30,800 = $ 11,000 + $ 73,000 + $ $ $ $ $ $ $ $ $ $ $ $ sh 7,600 + $ 4,500 + 3,100 + $ - Bal + $ 73,000 + $ 9,900 - $ -5,400 30,800 = $ $ 30,800 = $ 11,000 -11,000 Bal 3,100 + $ + $ 9,900 - $ -5,400 73,000 - $ 73,000 - $ + $ -1,200 + -1,200 + $ 1 Bal 3,100 + $ 30,800 = $ - + $ 9,900 - $ -5,400