Question

Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. Durin Ming Chen (the owner) completed these transactions. a Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value. b. The company paid $1,500 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days. f. The company purchased additional equipment for $6,000 cash. 9. The company paid an assistant $3,000 cash as wages for the month. h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $10,000 cash to settle the liability created in transaction c. j. Owner withdrew $1,000 cash from the company for personal use. Required: Enter the impact of each transaction on individual items of the accounting equation (Enter decreases to account balances with minus sign.) Assets Liabilities Accounts Receivable Cash Equity M. Chen, Withdrawals Accounts Payable Equipment M. Chen, Capital Revenues Expenses a - b + ++ Bal 4 C + Bal d + Bal + e + Bal - - + - + Bal 9 Bal ### + + < Prex 4 of 7 !!! Next >

Answer 1

M.Chen Capital 75,000 Equity M.Chen Withdrawals + Revenues + Expenses + + + $ $ 1,500 1,500 75,000 $ + 75,000 $ $ 1,500 2,500 75,000 $ $ 1,500 + S + + $ + $ + $ + $ + $ + + + S $ + Assets Liabilities Accounts Accounts Cash + Receivable + Equipment Payable 60,000 + + $ 15,000 + S (1,500) + 58,500 + $ + $ 15,000 $ + $ + $ 10,000 $ 10,000 + 58,500 + $ + $ 25,000 $ 10,000 + $ 2,500 + + + 61,000 + $ + $ 25,000 $ 10,000 + $ + $ 8,000 + 61,000 + $ 8,000 + $ 25,000 = $ 10,000 + $ (6,000) + + $ 6,000 55,000 + $ 8,000 + $ 31,000 = $ 10,000 + $ (3,000) + + 52,000 + $ 8,000 + $ 31,000 = $ 10,000 + $ 5,000 + $ (5,000) + 57,000+ $ 3,000 + $ 31,000 $ 10,000 + $ (10,000) + $ (10,000) + 47,000 + $ 3,000 + $ 31,000 = $ + $ (1,000) + 46,000+ $ 3,000 + $ 31,000 $ + $ 2,500 8,000 10,500 75,000 $ a $ |ь $ Bal. $ C Bal. $ d $ Bal. $ e Bal. $ f $ Bal. $ g $ Bal. $ Ꮒ $ Bal. $ i $ Bal. $ j $ Bal. $ P1 $ 1,500 + 75,000 $ 10,500 + + $ $ $ 1,500 3,000 4,500 75,000 $ + S 10,500 + + 75,000 $ + S $ 10,500 $ 4,500 + + 75,000 10,500 $ 4,500 + $ $ $ + HA + $ 1,000 + 1,000 + $ 75,000 10,500 $ 4,500 80,000 From above Total Assets Liabilities Equity = $ = $ = $ 80,000 Note: Please Comment down for any further clarifications.