Question

Wainright Industries reports the following transactions during its first month of operations: 1. Issued 10,000 shares of common stock for $15,000 cash. 2. Purchased land for $12,000, signing a note payable for the full amount. 3. Purchased office equipment for $1,200 cash. 4. Received cash of $14,000 for services provided to customers during the month. 5. Received cash of $8,500 for services to be provided to customers in the following month, 6. Purchased $800 of office supplies on account 7. Paid employees $10,000 for their first month's salaries. 8. Paid off half of balance due to office supplies vender, What was the total amount of Wainright's liabilities following these transactions?

Answer 1

Requirement Determination of Liabilities Particulars Opening Balance Debit Credit $ $ $ $ $ $ $ $ Transactions Debit Credit 37,500 $ 11,600 800 12,000 1,200 Cash $ Supplies $ Land $ Office Equipment $ Accumulated Depreciation - Office Equipment $ Notes Payable $ Accounts Payable $ Unearned Revenue $ Common Stock $ Sales Revenue $ Salaries Expense $ Totals $ Ending Balance Debit Credit 25,900 $ 800 $ 12,000 $ 1,200 $ $ $ 12,000 $ 400 $ 8,500 $ 15,000 $ 14,000 10,000 $ 49,900 $ 49,900 $ 400 $ $ $ $ 10,000 61,900 $ $ $ $ $ $ $ $ $ $ $ $ 12,000 800 8,500 15,000 14,000 $ $ 61,900 Total Liabilities: Notes Payable Accounts Payable Unearned Revenue $ $ $ $ 12,000 400 8,500 20,900