Question

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. Lita Lopez invested $68,000 cash and office equipment valued at $31,000 in the company in exchange for its common stock. The company purchased an office suite for $48,000 cash. The company purchased office equipment for $5,100 cash. The company purchased $3,700 of office supplies and $1,900 of office equipment on credit. The company paid a local newspaper $920 cash for printing an announcement of the office’s opening. The company completed a financial plan for a client and billed that client $4,200 for the service. The company designed a financial plan for another client and immediately collected a $8,200 cash fee. The company paid $1,200 cash in dividends to the owner (sole shareholder). The company received $3,200 cash as partial payment from the client described in transaction f. The company made a partial payment of $950 cash on the equipment purchased in transaction d. The company paid $2,300 cash for the office secretary’s wages for this period.

Answer 1