Question

A43 N A B C D E F G Н. к L M 3 PART A: 4 5 Accounting Equation: 6 ASSETS LIABILITIES EQUITY 7 Transaction Accounts Accounts Notes Common --Retained Earnings- Cash Equipment Receivable Supplies Payable Payable Stock Account 9 1 10 2 11 3 12 4 13 5 14 6 15 7 16 17 18 TOTALS SO $0 $ $0 $0 $0 $o 19 20 Total Assets = so Total Liabilities SO Total Equity = $0 21 22 REQUIRED: 23 A) account for the following transactions using the Accounting Equation above (use 1 row for each transaction) 24 B) After completing the Accounting Equation, prepare an Income Statement and a Balance Sheet for the month of July, 2017 for Strand Corp Sheet1 $0 $0

Answer 1

Accounting equation
	Assets	=	Liabilities	+	Equity
Transaction	Cash	Equipement	Accounts receivable	Supplies	Accounts Payable	Notes Payable		Common stock	Retained earnings
1	25,000	-	-	-	25,000	-	-	-	25,000	-	25,000
2	-	10,000	-	-	35,000	10,000	-	-	-	-	35,000
3	-	-	100,000	-	135,000	-	-	-	-	100,000	135,000
4	(75,000)	-	-	-	60,000	-	-	-	-	(75,000)	60,000
5		-	-	2,000	62,000	2,000	-	-	-	-	62,000
6	75,000	-	(75,000)	-	62,000	-	-	-	-	-	62,000
7	(5,000)	-	-	-	57,000	(5,000)	-	-	-	-	57,000
Total	20,000	10,000	25,000	2,000		7,000	-	-	25,000	25,000

Income Statement
Strand Corp
For the month of July 2017
	($)
Net Sales	100,000
Less: COGS	52,000
Gross Profit	48,000
Less: Rent Paid	25,000
Net Income	23,000

Balance Sheet
Strand Corp
For the month of July 2017
	($)
Assets
Current Assets
Cash and Cash equivalents	20,000
Supplies	2,000
Receivables	25,000
Total Current Assets	47,000
Property and Equipment	10,000
Total Assets	57,000
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable	7,000
Notes Payable	-
Total Current Liabilities	7,000
Non Current Liabilities	-
Shareholders equity
Common stock	25,000
Retained earnings	25,000
Total Shareholders equity	50,000
Total liabilities and Shareholders equity	57,000

Part B

a)

Insurance expense A/c Dr	10,000
To prepaid Insurance A/c		10,000

b)

Interest A/c Dr	10,000
To Accrued interest payable A/c		10,000

c)

Depreciation A/c Dr	10,000
To Accumulated Depreciation A/c		10,000

d)

Unearned revenue A/c Dr	10,000
To Revenue A/c		10,000