Lita Lopez started Biz Consulting, a new business, and completed
the following transactions during its first year of
operations.
Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
The company purchased an office suite for $40,000 cash.
The company purchased office equipment for $15,000 cash.
The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
The company paid a local newspaper $500 cash for printing an announcement of the office's opening.
The company completed a financial plan for a client and billed that client $2,800 for the service.
The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
Lita Lopez withdrew $3,275 cash from the company for personal use.
The company received $1,800 cash as partial payment from the client described in transaction f.
The company made a partial payment of $700 cash on the equipment purchased in transaction d.
The company paid $1,800 cash for the office secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
Lita Lopez started Biz Consulting, a new business, and completed
the following transactions during its first year of
operations.
Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
The company purchased an office suite for $40,000 cash.
The company purchased office equipment for $15,000 cash.
The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
The company paid a local newspaper $500 cash for printing an announcement of the office's opening.
The company completed a financial plan for a client and billed that client $2,800 for the service.
The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
Lita Lopez withdrew $3,275 cash from the company for personal use.
The company received $1,800 cash as partial payment from the client described in transaction f.
The company made a partial payment of $700 cash on the equipment purchased in transaction d.
The company paid $1,800 cash for the office secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
Solution :- (All Amount in $)
| Cash | Receivable | Supplies | Equipment | Building | Payable | Note Payable | Common stock | Retained earning | Revenues | Expenses | |
| 1 | 70000 | 10000 | 80000 | ||||||||
| 2 | (40000) | 40000 | |||||||||
| 3 | (15000) | 15000 | |||||||||
| 4 | 1200 | 1700 | 2900 | ||||||||
| 5 | (500) | 500 | |||||||||
| 6 | 2800 | 2800 | |||||||||
| 7 | 4000 | 4000 | |||||||||
| 8 | (3275) | (3275) | |||||||||
| 9 | 1800 | (1800) | |||||||||
| 10 | (700) | (700) | |||||||||
| 11 | (1800) | 1800 | |||||||||
| Total | 14525 | 1000 | 1200 | 26700 | 40000 | 2200 | 80000 | (3275) | 6800 | 2300 |
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