Leora Holden began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Holden (the owner) completed these transactions.
a. Owner invested $60,000 cash along with equipment that had a $15,000 market value.
b. Paid $1,500 cash for rent of office space for the month.
c. Purchased $10,000 of additional equipment on credit (payment due within 30 days).
d. Completed work for a client and immediately collected the $2,500 cash earned.
e. Completed work for a client and sent a bill for $8,000 to be received within 30 days.
f. Purchased additional equipment for $6,000 cash.
g. Paid an assistant $3,000 cash as wages for the month.
h. Collected $5,000 cash on the amount owed by the client described in transaction e.
i. Paid $10,000 cash to settle the liability created in transaction c.
j. Owner withdrew $1,000 cash for personal use.
Required
Create a table like the one in Exhibit 2.1, using the following headings for columns: Cash; Accounts Receivable; Equipment; Accounts Payable; Holden, Capital; Holden, Withdrawals; Revenues; and Expenses. Then use additions and subtractions to show the effects of the transactions on individual items of the accounting equation. Show new balances after each transaction.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.