Question

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $65,000 cash and office equipment valued at $38,000 in the company in exchange for its common stock b. The company purchased an office suite for $40,000 cash C. The company purchased office equipment for $5,900 cash d. The company purchased $3,500 of office supplies and $1,600 of office equipment on credit e. The company paid a local newspaper $800 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $4,700 for the service. 9. The company designed a financial plan for another client and immediately collected a $8,900 cash fee. h. The company paid $900 cash in dividends to the owner (sole shareholder). 1. The company received $3,700 cash as partial payment from the client described in transaction 1. The company made a partial payment of $800 cash on the equipment purchased in transaction d. k. The company paid $1,500 cash for the office secretary's wages for this period.

Answer 1

Equity Liabilities Accounts payable + Common stock Dividends + Revenues Expenses a 1,03,000 b bal Cash 65,000 -40,000 25,000 -5,900 19,100 Assets Accounts Office Office + Receivable + Supplies + Equipment + officesuite 38,000 40,000 38,000 40,000 5,900 43,900 40,000 3,500 1,600 3,500 45,500 40,000 1,03,000 с 1,03,000 bal d bal 5,100 5,100 1,03,000 e 19,100 -800 18,300 800 3,500 45,500 40,000 5,100 1,03,000 800 bal f bal 4,700 4,700 3,500 45,500 40,000 5,100 1,03,000 800 4,700 4,700 8,900 13,600 g bal 4,700 3,500 45,500 40,000 5,100 1,03,000 800 h 900 900 3,500 45,500 40,000 5,100 1,03,000 13,600 800 18,300 8,900 27,200 -900 26,300 3,700 30,000 -800 29,200 -1,500 27,700 4,700 -3,700 1,000 3,500 45,500 40,000 1,03,000 900 13,600 bal i bal j bal k bal 800 5,100 -800 4,300 1,000 3,500 45,500 40,000 1,03,000 900 13,600 800 1,500 2,300 1,000 3,500 45,500 40,000 4,300 1,03,000 900 13,600