Question

P1-40A (similar to) Question Help • Marian Macleod opened a public relations firm called Tuney Town on August 1, 2018. The following amounts summarize her business on August 31, During September 2018, the business completed the following transactions: 2018: i (Click the icon to view the transactions.) (Click the icon to view the amounts.) Analyze the effects of the transactions on the accounting equation of Tuney Town. Analyze the events chronologically, one transaction at a time. Beginning with transaction a., calculate the balance in each account after analyzing the effect of the transaction on the accounting equation. (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; A/R = Accounts Receivable; Adv. = Advertising; Com. = Common; Contr. = Contributed; Div. = Dividends; Exp. = Expense; Liab = Liabilities; Rev. = Revenue; Sup. = Supplies.) ASSETS LIAB. + EQUITY More Info Contr. Capital Retained Earnings Cash + A/R + Office + Land A/P + Com. Div. + Service Rent Adv. a. Sup. Stock Rev. Exp. Exp. Bal. 2,200 + 2,600 + 0 + 14,000 = 9,000 + 7,200 0 + 2,600 0 0 a. + + Received contribution of $7,000 cash from Marian Macleod in exchange for common stock. Performed service for a client and received cash of $1,400. Paid off the beginning balance of accounts payable. Purchased supplies from Office Max on account, $1,000. Collected cash from a customer on account, $1,800. Cash dividends of $1,900 were paid to stockholders. Consulted for a new band and billed the client for services rendered, $3,500. Recorded the following business expenses for the month: 1. Paid office rent, $600. 2. Paid advertising, $700. d. e f. g. Bal. + + h. Data Table ASSETS LIABILITIES EQUITY Print + Done Contributed Capital Retained Earnings Cash + Accounts + Office Land Accounts Common Dividends Service Rent Advertising Payable Stock Revenue Expense Expense Receivable Supplies + $ 2,600 + $ 0 + $ 14,000 = $ Bal. $ 2,200 9,000 + $ 7,200 + $ 2,600 Print Done

Answer 1

Equity Retained Earning Div + Service Revenue $0.00 $2,600.00 Rent Expense $0.00 Adv Expense $0.00 bal a. bal $0.00 $0.00 $0.00 b. $2,600.00 $1,400.00 $4,000.00 bal $0.00 $0.00 $0.00 C. Bal. Marian Macleod - Accounting Equation Assets Liab. Contributed Capitall Cash + A/R + Office + Land TA/P Common supplies stock $2,200.00 $2,600.00 $0.00 $14,000.00 $9,000.00 $7,200.00 $7,000.00 $7,000.00 $9,200.00 $2,600.00 $0.00 $14,000.00 $9,000.00 $14,200.00 $1,400.00 $10,600.00 $2,600.00 $0.00 $14,000.00 $9,000.00 $14,200.00 -$9,000.00 -$9,000.00 $1,600.00 $2,600.00 $0.00 $14,000.00 $0.00 $14,200.00 $1,100.00 $1,100.00 $1,600.00 $2,600.00 $1,100.00 $14,000.00 $1,100.00 $14,200.00 $1,800.00 -$1,800.00 $3,400.00 $800.00 $0.00 $14,000.00 $1,100.00 $14,200.00 -$1,900.00 $1,500.00 $800.00 $0.00 $14,000.00 $1,100.00 $14,200.00 $3,500.00 $1,500.00 $4,300.00 $0.00 $14,000.00 $1,100.00 $14,200.00 -$600.00 -$700.00 $200.00 $4,300.00 $14,000.00 $1,100.00 $14,200.00 $0.00 $4,000.00 $0.00 $0.00 d. Bal $0.00 $4,000.00 $0.00 $0.00 $4,000.00 $0.00 $0.00 e. Bal f. Bal $0.00 $1,900.00 $1,900.00 $0.00 $0.00 g. bal h-1 $4,000.00 $3,500.00 $7,500.00 $1,900.00 $0.00 $0.00 $600.000 h-2 Bal $700.00 $700.00 $0.00 $1,900.00 $7,500.00 $600.00