Question

F. Analyze Business Transactions: 1 Investment by Owner: Dec 1, invested $30,000 Cash to open a new company named Fastforward in exchange for Common Stock 2 Purchase Supplies with Cash: Paid $2,500 Cash to purchase supplies 3 Purchase Equipment with Cash: Spend $26,000 Cash to acquire Equipment 4 Purchase Supplies on Credit: Purchased $7.100 Supplies and promise to pay later 5 Provide Services for Cash: Provided services to customers and got paid $4,200 Cash 6 Pay Rent expense Paid $1,000 for Office Rent 7 Pay Emplyee Wages Paid eployee's wage $700 8 Provide Services on Credit Provided consulting services to customers $1,900. The customers will pay next week 9 Payment of Account Receivable Received the payment of $1,900 from Transaction 8's Customer 10 Pay Dividend Paid $200 Cash Dividend to the owner.

Answer 1

Solution:

Sol: Double Colums Genaral Journal Debit (Amount) $ Date 1-Dec 1 Debit (Amount) 30,000.00 30,000.00 2 2,500.00 2,500.00 3 26,000.00 26,000.00 4 7,100.00 7,100.00 5 4,200.00 4,200.00 Partculars Cash A/c Dr To Capital A/C (Being Capital introduced for new business) Purchase Supplies A/c Dr To Cash A/C (Being supplies purchased for Cash) Equipment A/c Dr To Cash A/C (Being New equipment pruchased) Purchase Supplies A/c Dr To Accouts Payable A/c (Being Supplies purchsed in cash) Cash A/c Dr Services Revenue A/C (Being Receipt of cash for Service) Office Rent A/c Dr Cash A/C (Being office Rent paid) Wages Expenses A/c Dr To Cash A/C (Being providing Service on A/c) Accounts Receivable A/c Dr Services Revenue A/C (Being Service provided on credit) Cash A/c Dr Accounts Receivable A/C (Being Receipt of cash for Service) Dividend A/c Dr Cash A/C (Being Dividend Paid) 6 1,000.00 1,000.00 7 700.00 700.00 8 1,900.00 1,900.00 9 1,900.00 1,900.00 10 200.00 200.00

Solution Assets Liabiities Date + - Shareholders Equity Dividend ($) Revenue ($) Dr Cr + Dr Cr + Expenses ($) Dr Cr Cr Dr Cr Common Stock ($) Dr Cr 30,000.00 + Dr 30,000.00 -1 + = + + 2,500.00 1 2 3 4 (2,500.00) (26,000.00) 26,000.00 + + = 7,100.00 + + 7,100.00 5 4,200.00 + + 4,200.00 6 + + 1,000.00 (1,000.00) (700.00) = + + 700.00 + + 1,900.00 7 8 9 10 1,900.00 1,900.00 + + (1,900.00) (200.00) + + 200.00 end. 64,000.00 (32,300.00) 7,100.00 30,000.00 6,100.00 11,500.00